Question 4 Which of the following statements is correct? A security whose value is derived from the price of some other "underlying" asset is called a liquid security. Capital market transactions involve only the purchase and sale of equity securities, i.e., common stocks. Money markets are markets for long-term debt and common stocks. o As they are generally defined, capital market transactions involves securities with maturities of less than one year. Capital market instruments include both long-term debt and common stocks