Which of These Does NOT Perform Vital Functions to Securities

question 23

Multiple Choice

Which of these does NOT perform vital functions to securities markets of all sorts by channeling funds from those with surplus funds to those with shortages of funds?

• A)Commercial banks
• B)Secondary markets
• C)Insurance companies
• D)Mutual funds

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Definitions:

Venture Capitalists

Investors who provide capital to start-ups or early-stage companies with high growth potential in exchange for equity stakes.

Debt Financing

The act of borrowing funds from external sources, such as banks, to finance an entity's operations or growth.

Equity Financing

The process of raising capital through the sale of shares in an enterprise, thus offering investors ownership interests.

Initial Public Offering

An initial selling of shares to the public at large.