Which of the Following Statements About Financial Markets and Securities

question 43

Multiple Choice

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

• A) Few common stocks are traded over-the-counter, although the over-the-counter markets have grown in recent years.
• B) A corporation acquires new funds only when its securities are sold in the primary market.
• C) Capital 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:

Contract Terms

The specific provisions, conditions, and stipulations that define the agreement and obligations between parties in a contract.

Subject to the Equities

A condition indicating that rights or claims are governed by or contingent upon the principles of equity or fairness in a legal context.

Caveat Emptor

A Latin term meaning "let the buyer beware," advocating that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.

Misrepresentation

The provision of false, misleading, or incorrect information about a material fact, intentionally or unintentionally, in a contractual agreement.