While the disincions ae blurin, ivetment bunks genenlly specialine in lending mo
ID: 2813617 • Letter: W
Question
While the disincions ae blurin, ivetment bunks genenlly specialine in lending money, whereas commercial banks generally help companies raise capital frorm other parties Which ofthe flowing tatements is CORRECT? b. an investoe sells shares of stock theough a beoker, then it would be a primary market transaction. .The New York Sock Exchange is.n auction market, and it has a physical location. Capital markets deal only with common stocks and oher equity securities. Home morage loans are traded in the money marketExplanation / Answer
From all of the given options option 'c' is correct. i.e. New York Stock exchange is an auction market, and it has a physical location.
Option A. is incorrect as investment banks help companies raise capital from other parties where as commercial banks generally specialize in lending money
Option B. is incorrect as if an investor sells a stock through a broker then it is a secondary market transaction not a primary market. it would be a primary market transaction when a company sells its shares through IPO.
Option D. is incorrect as capital maket deals with both long-term debt and equity.
Option E. is incorrect as home mortgage loans are for long-term debt so it would be a part of capital markets not money market. Money market instruments deals with debts of less than one year.
Therefore the correct answer is option C - The New York Stock Exchange is an auctioon market, and it has a physical location.
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