Question

Capital investments differ from stock and bond investments in that stock and bond investments can be sold in organized markets. True False

Answer 1

The statement is True.

Reason for statement being true:

Capital Investment is the amount of money invested to acquire long-term assets such as land, building, plant & machinery, etc. which are mostly long-term in nature and are sold in unorganized markets. On the other hand, stocks and bonds investment refers to the investment in shares and bonds of a company which can be sold in an organized market i.e. on stock exchange. Thus, whereas the capital investment are long tern investment without having the marketability in organized market, stocks and bonds can be sold in organized markets.