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dealers who trade stock electronically.
2) An example of a primary market transaction would be your uncle
transferring 100 shares of
Wal-Mart stock to you as a birthday gift.
3) Capital market instruments include both long-term debt and common
stocks.
4) If your uncle in New York sold 100 shares of Microsoft through his
broker to an investor in
Los Angeles, this would be a primary market transaction.
5) While the two frequently perform similar functions, investment
banks generally specialize in
lending money, whereas commercial
banks generally help companies raise large blocks of
capital from
investors.
Question 4
Which of the following statements is CORRECT?
1) It is usually easier to transfer ownership in a corporation than it is to
transfer ownership in a sole proprietorship
2) Corporate shareholders are exposed to unlimited liability.
3) Corporations generally face fewer regulations than sole
proprietorships.