Question

1. Secondary markets are markets used by corporations to raise cash by issuing securities for a short time period.

Group of answer choices

True

False

3. A corporation seeking to sell new equity securities to the public for the first time in order to raise cash for capital investment would most likely

Group of answer choices

conduct an IPO with the assistance of an investment banker.

engage in a secondary market sale of equity.

conduct a private placement to a large number of potential buyers.

place an ad in the Wall Street Journal soliciting retail suppliers of funds.

4.

Apple creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public.

This transaction is an example of a(n)

Group of answer choices

primary market transaction.

asset transformation by Morgan Stanley.

money market transaction.

foreign exchange transaction.

Answer 1

Answer
1.False
Primary markets are used by companies to raise cash though debt and equity securities

2.conduct an IPO with the assistance of an investment banker.
An IPO or initial public offering in conjunction with an investment banker helps in attracting public funding from the primary market.

3. asset transformation by Morgan Stanley.
It is a process of creating a new asset as part of a loan from liabilities of different charecteristics in form of bank deposits through an investment banker.

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