41.Which of the following describes the most direct function of:
| primary capital markets? | secondary capital markets? |
A | Source of liquidity | Security underwriting |
B | Source of liquidity | Source of new capital |
C | Source of new capital | Source of liquidity |
D | Source of new capital | Security underwriting |
Select exactly 1 answers from the following: A. B. C. D.
答案和详解如下!
Feedback: Correct answer: C
Feedback: Correct answer: C
Investment Analysis and Portfolio Management, 7th edition, Frank K. Reilly and Keith C. Brown (South-Western, 2003), pp. 108?12
2006 Modular Level I, Vol. III, pp. 231-236
Study Session 12-52-c
distinguish between primary and secondary capital markets, and explain how secondary markets support primary markets
New issues of securities, that provide initial and/or additional capital for governmental units and corporations, are underwritten and sold in the primary market; secondary capital markets provide liquidity to the owners of existing securities.
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