Which of the following statements is CORRECT?
A) If General Electric were to issue new stock this year it would be considered a secondary market transaction since the company already
Has stock outstanding.
B) Capital market transactions only include preferred stock and common
Stock transactions.
C) The distinguishing feature between spot markets versus futures markets transactions is the maturity of the investments. That is, spot market transactions involve securities that have maturities of less than one year, whereas futures markets transactions involve
Securities with maturities greater than one year.
D) Both Nasdaq "dealers" and NYSE "specialists" hold inventories of
Stocks.
E) An electronic communications network (ECN) is a physical location
Exchange.

Question

Quizplus · Accepted Answer

Both Nasdaq "dealers" and NYSE "specialists" hold inventories of stocks. The other options are incorrect. A is incorrect because issuing new stock is a primary market transaction, not a secondary market transaction. B is incorrect because capital market transactions can include a variety of securities, not just preferred and common stock. C is incorrect because spot market transactions can involve securities with maturities greater than one year, and futures market transactions can involve securities with maturities of less than one year. E is incorrect because an ECN is not a physical location exchange, but rather an electronic platform for buyers and sellers to trade securities directly.

Which of the Following Statements Is CORRECT