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Identify the Correct Statement About the Securities Market

Question 152

Multiple Choice

Identify the correct statement about the securities market.


A) Secondary markets make shares readily convertible into cash and increase the liquidity of securities.
B) Secondary markets make bonds readily convertible into cash and increase the funds available with a corporation.
C) The securities market decides the value of a corporation on the basis of its profits.
D) The securities market decides the value of a corporation on the basis of the number of years it has registered profits.
E) The securities market decides the value of a corporation on the basis of the number of its employees.

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