Which of the Following Statements Is True About Secondary Markets

question 21

Multiple Choice

Which of the following statements is true about secondary markets?

• A) In secondary markets, outstanding shares of stock are bought and sold among investors.
• B) Most secondary market transactions directly affect the capital of the firm that issues the securities.
• C) An active secondary market causes firms to sell their new debt or equity issues at a higher transaction cost of funds.
• D) All of the above statements are true.

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Definitions:

Hague Convention

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International Convention

A formal agreement between countries that aims to address global issues and set international standards on various matters.

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The legal and social entitlements afforded to children who have been legally adopted, including but not limited to, equality in treatment and inheritance rights.

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A long-term living situation where an individual or family intends to stay indefinitely, often symbolizing stability and commitment to a community.