A major decision confronting the business firm when purchasing marketable securities involves a trade-off between the opportunity to earn a return on idle funds during the holding period and the brokerage costs associated with the purchase and sale of marketable securities.

Question

Quizplus · Accepted Answer

This statement is true. When a business firm purchases marketable securities, they have to consider the potential return on investment during the holding period, as well as the costs associated with buying and selling the securities. The firm needs to balance these factors to make the best decision for their financial goals.

A Major Decision Confronting the Business Firm When Purchasing Marketable