Question
For what kinds of needs do you think a firm would issue securities in the money market versus the capital market? A firm would issue
For what kinds of needs do you think a firm would issue securities in the money market versus the capital market?
A firm would issue securities in the money market versus the capital market because: (Select all the answers that apply.)
___A. Long-term securities bonds and stocks are traded in the capital market and the money market.
___B. Money markets are short-term markets, so firms using these would be in need of funds for less than a year.
___C. Transactions in short-term debt instruments, or marketable securities, take place in the money market.
___D. Capital markets are typically used for fixed assets, which a company will use over several years.
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