If companies cannot rely on stock markets to obtain funds, they will have to rely more heavily on the ____ market to raise long-term funds.

Question

Quizplus · Accepted Answer

Stock markets are a primary source of equity financing for companies, allowing them to issue shares and receive capital from investors. If companies are unable to rely on stock markets, they will need to turn to debt financing. The bond market is the most common source of long-term debt financing for companies, making it a likely choice for companies seeking alternative sources of funding. Derivatives, money markets, and foreign exchange markets are not typically used for long-term funding solutions.

If Companies Cannot Rely on Stock Markets to Obtain Funds