Question

In: Finance

Select all that is /are true about the financial markets. A.financial markets bring together the buyers...

Select all that is /are true about the financial markets.

A.financial markets bring together the buyers and sellers of debt and equity together .

B.stocks trading on an organized exchange such as the NYSE are also referred to as listed securities.

C.Securities traded between two shareholders happen in the primary market.

D.When a firm sells shares to the public this is a primary market transaction

E. The OTC market has a central location and is also an auction market.

F. on a typical day in the US the largest volume of trading in auction markets occurs in the OTC market

Solutions

Expert Solution

a)financial markets bring together the buyers and sellers of debt and equity together: Financial Market bring together Buyer and seller for Equity of the company not Debt.So answer is false.

b)stocks trading on an organized exchange such as the NYSE are also referred to as listed securities:The answer is true. Because if the stock is listed in NYSC is called listed in new York stock exchange.

c)Securities traded between two shareholders happen in the primary market: it's false answer. It's should be secondary market.Primary market is not having any liquidity

d)When a firm sells shares to the public this is a primary market transaction:No it's also false answer, In primary market company prepare all the pre IPO activities.Selling activities only happen in secondary market.

e) The OTC market has a central location and is also an auction market:Auction market and OTC market is different.Answer is false

f)on a typical day in the US the largest volume of trading in auction markets occurs in the OTC market: no answer is false because both market is different.


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