Which of the following statements is CORRECT? The most important difference betw

Question

Which of the following statements is CORRECT?

The most important difference between spotmarkets versus futures markets is the maturity of the instrumentsthat are traded. Spot market transactions involve securitiesthat have maturities of less than one year whereas futures marketstransactions involve securities with maturities greater than oneyear.

Capital market transactions involve onlypreferred stock or common stock.

If General Electric were to issue new stockthis year, it would be considered a secondary market transactionsince the company already has stock outstanding.

Both Nasdaq dealers and “specialists” on the NYSE holdinventories of stocks.

Money market transactions do not involvesecurities denominated in currencies other than the U.S.dollar.

Explanation / Answer

THE 4TH OPTION IS THE RIGHT ANSWER. Both Nasdaq dealers and “specialists” on the NYSE holdinventories of stocks. OPTION A, B,C AND E DON'T MAKE ANYSENSE. DON'T FORGET TO RATE IF IT IS HELPFUL. BEST OF LUCK

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