If J.P. purchases a newly issued share of stock in a well-known corporation, then he is engaging in which of the following?
A)Deficit spending
B)Indirect finance
C)Direct finance
D)Discrete finance

Question

Quizplus · Accepted Answer

Purchasing a newly issued share of stock is an example of direct finance, as J.P. is providing funds directly to the corporation in exchange for a share of ownership in the company. Deficit spending refers to a situation where expenses exceed income, while indirect finance involves the use of a financial intermediary to channel funds from savers to borrowers. Discrete finance is not a commonly used term in finance.

If JP Purchases a Newly Issued Share of Stock in a a Well-Known