ECONOMICS
ECONOMIC DEVELOPMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Philippine Stock Exchange.
|
|
|
A corporation acquires new funds only when its securities are sold in the primary market.
|
|
|
Money market securities are usually more widely traded than longer term securities and so tend to be more liquid.
|
|
|
All of the above
|
Detailed explanation-1: -They work as an intermediary between the savers and the investors by mobilising funds between them.
Detailed explanation-2: -Primary Market When a company publicly sells new stocks or bonds for the first time, such as in an initial public offering (IPO), it does so in the primary capital market. This market is sometimes called the new issues market.
Detailed explanation-3: -An important financial institution that assists in the initial sale of securities in the primary market is the investment bank.
Detailed explanation-4: -Commercial Banks. Commercial banks are generally stock corporations whose principal obligation is to make a profit for their shareholders. Savings and Loans/Savings Banks. Credit Unions.