Question
In: Finance
Some company issues $ 500MM of stock to help it fund a new manufacturing facility for...
Some company issues $ 500MM of stock to help it fund a new manufacturing facility for monoclonal antibodies . Is this a Capital Market transaction ?
Not enough information is provided to answer this question
No.
Yes .
Solutions
Expert Solution
Yes, this is a Capital Market transaction.
A Capital Market transaction is one in which long-term securities are issued to investors in exchange for long-term capital. Common stock is a long-term source of capital. The proceeds are used for acquiring long-term assets. Hence, this is a Capital Market transaction.
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