Question
Are the following statements true or false? 1. Dividends cannot be paid to stockholders when the firm has net losses and can only be paid
Are the following statements true or false?
1. Dividends cannot be paid to stockholders when the firm has net losses and can only be paid if the firm has a net profit.
2. In a primary market transaction, the funds move from a buyer of the security to an investor in the security rather than to the issuer of the security. In these transactions, the issuer of the security is only interested in the price at which the securities were sold.
3. The money market includes financial assets expected to mature within one year.
4. The capital market includes financial assets expected to mature within one year.
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