menu
Sign up

When a Corporation Uses the Financial Markets to Raise New

Question 33
Multiple Choice

When a corporation uses the financial markets to raise new funds, the sale of securities is made in the: A) primary market. B) secondary market. C) on-line market. D) third market.

Related questions
Q 34
Companies that have higher risk than a competitor in the same industry will generally have: A) to pay a lower interest rate than its competitors. B) a higher relative stock price than its competitors. C) a lower cost of funds than its competitors. D) to pay a higher interest rate than its competitors.
Q 35
The financial markets allocate capital to corporations by: A) reflecting expectations of the market participants in the corporation's share price. B) requiring higher returns from companies with lower risk than their competitors. C) rewarding companies with expected high returns with lower relative stock prices. D) relying on the opinion of investment dealers.
Q 36
Corporate restructuring has been one result of more institutional ownership. Restructuring can cause: A) stability in the asset and liabilities of the firm. B) the purchase of low-profit margin divisions. C) the promotion of current management and/or large increases in the workforce. D) changes in the asset and liabilities of the firm.
logo
© 2020-2021 Cozyplus FZ LLC. All rights reserved