Which of the following is best classified as a capital market security?
A) Common stock
B) U. S. Treasury bill
C) Commercial paper
D) Bankers' acceptances

Question

Quizplus · Accepted Answer

Common stock is best classified as a capital market security because it represents equity ownership in a company, with potential for dividends and capital gains, and is traded on stock exchanges. Capital market securities typically have maturities of more than one year and include stocks and long-term debt. U.S. Treasury bills, commercial paper, and bankers' acceptances are all short-term debt securities, thus classified under money market instruments, not capital market securities.

Which of the Following Is Best Classified as a Capital