Which One of the Following Statements Is True About Secondary

question 29

Multiple Choice

Which one of the following statements is true about secondary markets?

• A)In secondary markets,outstanding shares are bought and sold among investors.
• B)An active secondary market causes companies to sell their new debt or equity issues at a higher cost of funds.
• C)For an investor,the function of secondary markets is to provide profitability for the shares of securities they own.
• D)All of the above are true statements.

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Definitions:

Negligence Or Mismanagement

Failures in duty or improper handling of responsibilities, often leading to harm or loss, due to carelessness or lack of competence.

Breach Of Trust And Confidence

This legal term refers to an act that undermines the trust and confidence between parties in a relationship, particularly in employment, where an employer significantly violates an implied term of mutual trust and confidence.

Shareholder Votes

The process by which shareholders express their preferences or make decisions on corporate matters, typically at annual meetings.

Employment Contracts

Legal agreements between employers and employees specifying the terms of employment, including duties, compensation, and duration of the employment.