Security markets provide liquidity:________

Asked 11 months ago
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a. by allowing corporations to raise funds by buying new issues.
b. by creating a market in which owners may easily turn an investment into cash through a purchase.
c. by allowing corporations to raise funds by selling new issues and by creating a market in which owners may easily turn an investment into cash through its sale.
d. none of these options are correct.

1 Answer

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Answer:

C. by allowing corporations to raise funds by selling new issues and by creating a market in which owners may easily turn an investment into cash through its sale

Explanation:

Naturally, a security market is seen to permit you do more with your actual savings within your saving periods. It is seen to aid over the counter trading which is seen to occur directly between the trader and the broker. In certain cases that can be termed marketable securities, it is seen to occur due to the maturities are seen to tend to be less than one year; and at such, the buyer/broker rates at which they can be bought or sold have little effect on prices.

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Nicole Baumbach
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answered 11 months ago