Jody purchases a stock from her employer,Acme Corporation.This is an example of ________ finance:

Question

Quizplus · Accepted Answer

Jody's purchase of a stock directly from Acme Corporation is an example of direct finance, where funds flow directly from savers/investors to the borrowers/firms. This is because Jody is providing funds directly to the company in exchange for a share of ownership, rather than going through an intermediary, such as a bank or mutual fund (indirect finance). The purchase is also not related to regulation or investing in a general sense, so options A) unregulated and D) investor are not the best choices.

Jody Purchases a Stock from Her Employer,Acme Corporation