QUESTION 4 Once a stock has been purchased by an investor in the primary market through something like an initial public offering (IPO), the stock then trades between investors, not between investors and the company, in the secondary market. True False QUESTION 5 One of the advantages of common stock financing relative to debt financing is that dividends are tax deductible (paid before the firm pays taxes), unlike interest on bonds, which is paid with after-tax dollars. O True False QUESTION 6 One of the advantages of debt/bond financing relative to equity financing is that debt is "safer" for the investor, so bond investors accept a lower required return, everything else equal (like IBM bond holders versus IBM stockholders), than stock investors. O True False