Which of the Following Statements Is CORRECT

question 10

Multiple Choice

Which of the following statements is CORRECT?

• A) The New York Stock Exchange is an auction market,and it has a physical location.
• B) Home mortgage loans are traded in the money market.
• C) If an investor sells shares of stock through a broker,then it would be a primary market transaction.
• D) Capital markets deal only with common stocks and other equity securities.
• E) While the distinctions are blurring,investment banks generally specialize in lending money,whereas commercial banks generally help companies raise capital from other parties.

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Definitions:

Legal Admissions

Refers to statements or facts acknowledged to be true by parties involved in a legal proceeding, which can be used as evidence in court.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Implied Authority

Authority of an agent that is not expressly granted but assumed to be provided due to the nature of the agent's work or position.

Apparent Authority

Refers to a situation where a third party correctly believes that an agent has the power to act on behalf of a principal, even if the agent does not have the actual authority.