Capital markets do not include which of the following securities?
A) Common stock
B) Commercial paper
C) Government bonds
D) Preferred stock

Question

Quizplus · Accepted Answer

Commercial paper is a short-term instrument used primarily for the financing of accounts receivable, inventories, and meeting short-term liabilities. It is typically issued by corporations to fund their day-to-day operations, making it a part of the money market, not the capital market. Capital markets deal with long-term securities like stocks and bonds.

Capital Markets Do Not Include Which of the Following Securities