Which of the following statements is CORRECT? Select one: a. Capital market tran

Question

Which of the following statements is CORRECT?

Select one:

a. Capital market transactions only include preferred stock and common stock transactions.

b. If General Electric were to issue new stock this year it would be considered a secondary market transaction since the company already has stock outstanding.

c. Both Nasdaq "dealers" and NYSE “specialists” hold inventories of stocks.

d. An electronic communications network (ECN) is a physical location exchange.

e. The distinguishing feature between spot markets versus futures markets transactions is the maturity of the investments. That is, spot market transactions involve securities that have maturities of less than one year, whereas futures markets transactions involve securities with maturities greater than one year.

Explanation / Answer

C is correct.

A is incorrect because capital market transaction also includes bonds, options, futures et.

B is incorrect because new stock issue over existing is also done in primary markets but known as follow on public offer

D is incorrect as ECN do not have physical location

E is incorrect because spot market transactions are for immediate deivery

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