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5) A major disadvantage of all partnerships relative to all corporations is
the fact that federal income taxes must be paid by the partners rather
than by the firm itself
Question 9
Which of the following statements is CORRECT?
1) If you purchase 100 shares of Disney stock from your brother-in-law,
this is an example of a primary market transaction.
2) If Disney issues additional shares of common stock through an
investment banker, this would be a secondary market transaction.
3) The NYSE is an example of an over-the-counter market.
4) Only institutions, and not individuals, can engage in derivative market
transactions.
5) As they are generally defined, money market transactions involve
debt securities with maturities of less than one year
Question 10
Which of the following factors would be most likely to lead to an
increase in interest rates in the economy?