$1.$ Interactions between financial market participants

Financial markets facilitate the transfer of excess funds from those who have them to those who need them.

In the following table, determine whether each financial market participant is a surplus unit or deficit unit.

Financial Market Participant

Surplus Unit

Deficit Unit

A consumer that purchases equity securities from a new tech company

A household that has excess credit card debt and never saves money

The typical college student

An angel investor

Suppose Green Network Energy needs to raise money to finance its new manufacturing facility, but their CFO does not want to part with any of the firm$$s equity. In this case, Green Network Energy would likely issue securities to obtain the funding.

Which of the following are ways that Green Network Energy could obtain funds to finance the expansion of its operations, given its stated preference in the previous question? Check all that apply.

Issue commercial paper

Issue preferred stocks

Issue common stocks

Issue corporate bonds