ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They both receive capital to use for growth.
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They DO NOT receive capital to use for growth.
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Either A or B
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None of the above
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Detailed explanation-1: -Which best describes the role that government and business play in investments? They both use taxes to support a country’s growth.
Detailed explanation-2: -Capital markets offer continuous availability of funds to finance companies, by linking companies, savers, and investors, facilitating transaction settlement, promoting saving habits, and channelling part of the savings into new and attractive investment opportunities.
Detailed explanation-3: -If an equity investment rises in value, the investor would receive the monetary difference if they sold their shares, or if the company’s assets are liquidated and all its obligations are met.
Detailed explanation-4: -Capital is used by companies to pay for the ongoing production of goods and services to create profit. Companies use their capital to invest in all kinds of things to create value.