Which of the following statements best describes financial markets?
A)If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.
B)The IPO market is a major part of the secondary market.
C)Only institutions, not individuals, can participate in derivatives market transactions.
D)Money market transactions involve debt securities with maturities of less than one year.

Question

Quizplus · Accepted Answer

Financial markets involve the buying and selling of financial assets such as stocks, bonds, and derivatives. Option A is incorrect as a secondary market involves the trading of existing securities, not the issuance of new ones. Option B is incorrect as the IPO market is part of the primary market, not the secondary market. Option C is incorrect as both institutions and individuals can participate in derivative market transactions. Option D is correct as money market transactions involve debt securities with maturities of less than one year.

Which of the Following Statements Best Describes Financial Markets