Which of the following statements about financial markets and securities are true?Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Philippine Stock Exchange.A corporation acquires new funds only when its securities are sold in the primary market.Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid.All of the choices are true.

A financial market is any marketplace where securities are traded, such as the currency market, bond…

Answered: Which of the following statements about…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Which of the following statements about financial markets and securities are true?

Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Philippine Stock Exchange.
A corporation acquires new funds only when its securities are sold in the primary market.
Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid.
All of the choices are true.

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions