Quiz Ch 02 – T/F Defining Capital Markets
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Capital markets encompass the markets for long-term debt and equity.
True or false: Capital markets encompass the markets for long-term debt and equity.
True or false: Financial intermediaries primarily allocate funds to financial assets rather than real assets.
True or false: The stocks of major corporations are traded continuously or almost continuously in multiple global markets.
True or false: Three-quarters of U.S. corporate equities are directly held by households.
True or false: Individuals have two investment options in corporations: lending money to them or acquiring additional shares.
True or false: The majority of NASDAQ securities are traded in the secondary market.
True or false: Secondary markets facilitate the trading of securities already issued among investors.
Which entity is usually responsible for underwriting an initial public offering?
In what situations is a primary market typically employed?
Which might offer a financial return to certain investors but not to others?