Which market allows corporations and governments to raise funds by issuing shares of stock and bonds directly to the public? A. primary market B. secondary market C. private placement market D. all of the above

Q: Which statement(s) below is (are) correct relative to investment companies? (select all that apply)…

A: Investment companies play a crucial role in the financial markets by providing individuals with a…

Q: Funds available to corporate issuers of commercial paper come from which market? O A. capital O B.…

A: Commercial paper is a short term source of debt for a company

Q: Primary markets are important to _______ because of _______; secondary markets are important to…

A: Primary Market refers to the market when entity floats its shares for the first time in the market.…

Q: Perform an analysis of the effect of investment funds on share ownership of business owners and…

A: The investment funds are institutions and groups of investors that provide the funds for the…

Q: How do bonds provide financing to corporations for their capital projects? What are the key…

A: A bond is a good source of finance. Payment of coupon at a regular interval help in tax savings.

Q: Describe stocks and bonds and compare their advantages/disadvantages as a company's two major…

A: Stock: A stock can be a common sentence used to describe any company's proprietorship certificates.…

Q: Training grants and tax abatement are examples of type of equity financing. O government subsidies…

A: Subsidies are financial benefits that the government or other organizations provide to support…

Q: Discuss and explain why a company may choose to raise capital by issuing bonds instead of issuing…

A: Capital is the source where the company raised money to run the business. There are two ways: Bonds…

Q: Advantages of investing in mutual funds compared to individual securities include all of the…

A: Mutual funds are type of investment, which are pooled from the group of investors, which are…

Q: According to the "Pecking Order Theory" of capital structure, what is the first preferred source of…

A: The Pecking order theory of capital structure tells that a company should prefer to finance…

Q: Explain how securities markets provide a link between the corporation and investors.

A: Investment means engaging the funds to generate income for the future. Those who invest their funds…

Q: How does a company utilize stocks and bonds in financing growth? Identify the major sources of…

A: Financial capital is the money used to fund businesses and some public projects. It is made…

Q: A sinking fund can be set up in one of two ways. Discuss the advantagesand disadvantages of each…

A: Introduction: A sinking fund is a bond issuing provision that allows for the annual redemption of…

Q: Why would a corporation elect to raise funds via a securitization rather than a corporate bond?

A: An indirect claim security whose value (in whole or in part) is derived from the market price of the…

Q: ost of capital versus investor yields. Also, explain the municipal bond interest in term

A: We know that there are two parties of corporate bond, one is issuer party that is known a company…

Q: Which of the following assist companies in raising capital, advise firms on major transactions such…

A: Investment Banks are banks or Institutions that provide various services related to finance to the…

Q: Why do firms generally prefer to borrow funds to obtain long-term financing rather than issue shares…

A: When a firm or company needs capital to grow or start a new project then it uses debt or equity or…