Corporations use securities markets to raise long-term financial capital from investors.

Question

Quizplus · Accepted Answer

Corporations often issue stocks or bonds in securities markets to raise funds from investors who are willing to provide long-term financial capital. These investors are attracted by the potential returns on their investments, which may include dividends or interest payments, as well as the opportunity to participate in the future growth of the company.

Corporations Use Securities Markets to Raise Long-Term Financial Capital from Investors