Stedsmart ltd and Fignermo ltd are alike with respect to financial and operating char- acteristics, except that Stedsmart ltd has less publicly traded debt outstanding thanFignermo ltd. Stedsmart ltd is most likely to have:
A) no market liquidity risk.
B) lower market liquidity risk.
C) higher market liquidity risk.

Question

Quizplus · Accepted Answer

Stedsmart ltd, having less publicly traded debt, is likely to have higher market liquidity risk because there are fewer opportunities for trading, making it harder to buy or sell without affecting the price.

Stedsmart Ltd and Fignermo Ltd Are Alike with Respect to Financial