Which of the Following Statements About Financial Markets and Securities

question 74

Multiple Choice

Which of the following statements about financial markets and securities are true?

• A) Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the New York Stock Exchange.
• B) A corporation acquires new funds only when its securities are sold in the primary market.
• C) Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid.
• D) All of the above are true.
• E) Only A and B of the above are true.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Current Ratio

A measurement indicating how well a business can cover its short-term debts with its available assets, made by dividing current assets by current liabilities.

Financial Statements

Official records that outline the financial activities and condition of a business, individual, or other entity.

Average Collection Period

The mean number of days a company waits to get payments from customers for products or services provided on credit.