Which of the Following Statements Is CORRECT

question 10

Multiple Choice

Which of the following statements is CORRECT?

• A) The New York Stock Exchange is an auction market,and it has a physical location.
• B) Home mortgage loans are traded in the money market.
• C) If an investor sells shares of stock through a broker,then it would be a primary market transaction.
• D) Capital markets deal only with common stocks and other equity securities.
• E) While the distinctions are blurring,investment banks generally specialize in lending money,whereas commercial banks generally help companies raise capital from other parties.

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Definitions:

Shipping Costs

Expenses associated with the delivery of goods from the seller to the buyer, which can include packing, postage, and insurance costs.

Cash Payback Formula

A method used to calculate the amount of time it takes for an investment to generate cash flows sufficient to recoup the initial investment cost.

Net Income

The net income of a company, which is the remaining amount after deducting all costs and taxes from its total revenue.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.