Which of the following best describes the concept of maturity matching?
A) Companies use funds from selling stocks to fund long-term projects and funds from selling bonds to fund short-term projects.
B) Companies try to match the term of a project with the maturity of the financing that pays for it.
C) Companies use funds from selling bonds to fund long-term projects and funds from selling stocks to fund short-term projects.
D) Companies always use bonds to finance both short- and long-term projects because stocks have no maturity and therefore cannot be matched to the length of projects.
E) None of the above describes the concept of maturity matching.
Correct Answer:
Verified
Q13: _ markets deal in long-term securities having
Q14: _ markets deal in short-term securities having
Q15: The main purpose of an economy's financial
Q16: Typically debt financing can be either short-
Q17: Financial intermediaries are associated with:
A)investment banks.
B)direct transfers.
C)indirect
Q19: The sale of a 10-year bond by
Q20: Financial markets have the basic function of:
A)providing
Q21: Which of the following is not a
Q22: The document which details the issuer's finances
Q23: Investment banks:
A)help companies issue new securities.
B)are part
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