Question

Which of the following statements regarding secondary markets is least accurate? Secondary markets are important because...

Which of the following statements regarding secondary markets is least accurate? Secondary markets are important because they provide:

  

investors with liquidity.

No answer text provided.

firms with greater access to external capital.

regulators with information about market participants.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

D.regulators with information about market participants.

Secondary markets are important because they provide liquidity and continuous information to investors. The liquidity of the Secondary markets adds value to both the investor and firm because more investors are willing to buy issues in the primary market, when they know these issues will later become liquid in the secondary market. Therefore, the secondary market makes it easier for firms to raise external capital.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following statements regarding club deals is least accurate? Club deals: Select one: a....
Which of the following statements regarding club deals is least accurate? Club deals: Select one: a. provide a competitive opportunity for weak private equity firms b. offer increased returns for investors c. offer diversification benefits to participating private equity firms d. provide an investment opportunity when private equity capital is scarce
Which of the following statements regarding club deals is least accurate? Club deals: Select one: a....
Which of the following statements regarding club deals is least accurate? Club deals: Select one: a. provide a competitive opportunity for weak private equity firms b. offer increased returns for investors c. offer diversification benefits to participating private equity firms d. provide an investment opportunity when private equity capital is scarce
Select all the statements that are true about primary markets Question 2 options: primary markets is...
Select all the statements that are true about primary markets Question 2 options: primary markets is where investors buy and sell bonds with each other NASDAQ is the most important of the primary markets The New York Stock Exchange is the most important of the primary markets investment banks are one of the key participants of primary markets primary markets is where investors buy and sell stocks with each other primary markets is where firms raise capital
Secondary markets for financial securities: Question 4 options: are an important source of funding for companies....
Secondary markets for financial securities: Question 4 options: are an important source of funding for companies. are not important, since they don't bring in funds to companies. are important, since they provide information about the price investors will be willing to pay if the company issues new bonds or equity. are important, but only for the savers who hold the securities. You lend $50 to a friend. You agree that she will pay you back with interest in 2 years....
1- which one of the following statements regarding valuation is false a when using the discounted...
1- which one of the following statements regarding valuation is false a when using the discounted free cash flow model, we should use a firm's wacc b. the comparables method takes into acount important differences between different firms c the difference between the discounted free cah flow model and the dividend discount model is that the latter computes a firms stock price directly while the free cash flows model has to make adjustments to get the share price d one...
Which of the following statements is FALSE? Select one: a. Organized markets are financial markets in...
Which of the following statements is FALSE? Select one: a. Organized markets are financial markets in which contracts that provide its holder either the obligation or the choice to buy or sell a financial asset are traded. b. None c. OTC markets are financial markets whereby geographically dispersed traders are linked to one another via telecommunications systems and computers, trade in securities. d. A secondary market is a financial market in which financial claims previously issued are exchanged. .
Which one of the following statements is most correct about the advantages of a joint venture...
Which one of the following statements is most correct about the advantages of a joint venture as compared to a greenfield investment? Political risk is eliminated because of a local partner The local partner's contacts and reputation provide easier access to host country's capital markets Financial disclosure between joint venture partners is always transparent Political risk is eliminated because of a local partner AND The local partner's contacts and reputation provide easier access to host country s capital markets Local...
Which of the following statements is incorrect regarding international diversification? Group of answer choices International diversification...
Which of the following statements is incorrect regarding international diversification? Group of answer choices International diversification across equities fails during market downturns. International diversification leads to better improvements in the efficient frontier for investors in developing economies than for investors in developed economies. International diversification across sectors or across markets provides similar improvement in the efficient frontier. International diversification improves the efficient frontier for investors in both developed and developing economies. International diversification should consider the type and weighting of...
37. Which of the following is not a private equity investing strategy? A. venture capital B....
37. Which of the following is not a private equity investing strategy? A. venture capital B. mezzanine financing C. distressed debt investing in start-up firms D. leveraged buyouts 38. Venture capitalists are always looking for viable business to invest in. In reviewing all the issues affecting profitability and realization of return, which of the following issues would be the most important? A. Professional background of the management team B. Key staff are “locked in” with non-computer algorithms C. Rate of...
Which of the following statements about forward contracts is least accurate? Select one: a. The long...
Which of the following statements about forward contracts is least accurate? Select one: a. The long promises to purchase the assets. b. A forward contract can be exercised at any time. c. Both parties to a forward contract have potential default risk.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT