Which of the Following Statements Is CORRECT

question 16

Multiple Choice

Which of the following statements is CORRECT?

• A) The most important difference between spot markets versus futures markets is the maturity of the instruments that are traded.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.
• B) Capital market transactions involve only preferred stock or common stock.
• C) If General Electric were to issue new stock this year,this would be considered a secondary market transaction since the company already has stock outstanding.
• D) Both NASDAQ dealers and "specialists" on the NYSE hold inventories of stocks.
• E) Money market transactions do not involve securities denominated in currencies other than the U.S.dollar.

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Definitions:

Diversity Jurisdiction

Federal courts' authority to hear lawsuits involving parties from different states or countries, based on their diversity of citizenship.

Corporation

A firm that is authorized by statute to act as a legal entity separate and distinct from its owners (shareholders).

Federal Courts

Courts established by the federal government of a country, which have jurisdiction over matters outlined in the federal constitution.

Independent System

A system that operates autonomously, without dependence on external systems or factors, often used in the context of power grids or computing.