Which of the following statements about financial markets and securities are true?
A) Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the New York Stock Exchange.
B) A corporation acquires new funds only when its securities are sold in the primary market.
C) Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid.
D) All of the above are true.
E) Only A and B of the above are true.

Question

Quizplus · Accepted Answer

All the statements provided are true. A) describes the trading venues for common stocks accurately, B) correctly identifies that corporations acquire new funds during the initial sale of securities in the primary market, and C) accurately states that money market securities, due to their short-term nature, are generally more liquid than longer-term securities.

Which of the Following Statements About Financial Markets and Securities