Which of the Following Statements Is CORRECT

question 22

Multiple Choice

Which of the following statements is CORRECT?

• A) If General Electric were to issue new stock this year it would be considered a secondary market transaction since the company already has stock outstanding.
• B) Capital market transactions only include preferred stock and common stock transactions.
• C) The distinguishing feature between spot markets versus futures markets transactions is the maturity of the investments. That is, spot market transactions involve securities that have maturities of less than one year, whereas futures markets transactions involve securities with maturities greater than one year.
• D) Both Nasdaq "dealers" and NYSE "specialists" hold inventories of stocks.
• E) An electronic communications network (ECN) is a physical location exchange.

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Definitions:

Informative Message

A communication that aims to enlighten or inform the recipient about specific facts or details.

Order of Importance

A method of organizing information or arguments by arranging them from the most significant to the least significant or vice versa.

Shifting Emphasis

The act of changing the focus or importance from one idea or part of a message to another to adjust the perception or impact of the communication.

Informative Message

A communication designed to convey facts and information without the intention of influencing opinions or decisions.