Fred sells newly issued bonds.Ethel sells newly issued stocks.Who uses direct finance?

Question

Quizplus · Accepted Answer

Both Fred and Ethel use direct finance as they are directly involved in the sale of newly issued financial securities to investors. In the case of Fred, this involves selling newly issued bonds, while Ethel sells newly issued stocks. Direct finance allows businesses to raise funds directly from investors, without intermediaries such as banks, and can provide a more efficient and cost-effective means of raising capital.

Fred Sells Newly Issued Bonds