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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
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.
tableFinancial Market Participant,Surplus Unit Deficit UnitA state that is constantly running a budget deficit,A firm that issues equity securities to expand operations,A consumer that purchases equity securities from a new tech company,An angel investor,
Suppose Moonlit Productions 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, Moonlit Productions would likely issue securities to obtain the funding.
Which of the following are ways that Moonlit Productions could obtain funds to finance the expansion of its operations, given its stated preference in the previous question? Check all that apply.
Issue common stocks
Issue preferred stocks
Issue corporate bonds
Issue commercial paper
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