Which of the following statements about financial markets and securities is TRUE?
A)Many common stocks are traded over-the-counter,although the largest corporations usually have their shares traded at organized stock exchanges such as the New York Stock Exchange.
B)As a corporation gets a share of the broker's commission,a corporation acquires new funds whenever its securities are sold.
C)Capital market securities are usually more widely traded than shorter-term securities and so tend to be more liquid.
D)Prices of capital market securities are usually more stable than prices of money market securities,and so are often used to hold temporary surplus funds of corporations.

Question

Quizplus · Accepted Answer

This statement is true as many common stocks are traded over-the-counter, but larger corporations usually have their shares traded at organized stock exchanges such as the New York Stock Exchange.

Answer: B
 This statement is false as a corporation does not get a share of the broker's commission when its securities are sold. The broker's commission goes to the broker, not the corporation.

Answer: C
 This statement is true as capital market securities are usually more widely traded than shorter-term securities and so tend to be more liquid.

Answer: D
 This statement is false as prices of money market securities are usually more stable than prices of capital market securities, and so are often used to hold temporary surplus funds of corporations.

Which of the Following Statements About Financial Markets and Securities