Upon entering the capital markets, an investor might invest in common stocks, preferred stock, negotiable certificates of deposit, and convertible securities.
Short-term negotiable CDs would be instruments of the money market.

Question

Quizplus · Accepted Answer

Negotiable certificates of deposit (CDs) are typically considered to be part of the money market, which deals with short-term borrowing and lending. However, this statement incorrectly suggests that CDs are a form of stock or security that can be bought in the capital markets. CDs are actually a type of deposit account offered by banks.

Upon Entering the Capital Markets, an Investor Might Invest in Common