QUESTION 13

Which is not correct?

		The financial markets serves as the mechanism whereby corporations (acting as deficit units) can obtain funds from investors (acting as surplus units).
		Financial institutions serve as intermediaries to connect the investment management activity with the corporate finance activity.
		If a security is lliquid, investors may not be able to find a willing buyer for it in the secondary market and may have to sell the security at a large discount just to attract a buyer.
		Primary markets facilitate the issuance of new securities