QUESTION 5

Although a firm whose stock trades in the secondary market does not receive any money from the trade, an important function occurs because ____.

		it dampens demand for bonds
		it eliminates risk in the stock market
		it helps establish the price of the company's stock
		All of the above

1 points

QUESTION 6

Financial markets _______.

		produce an effecient allocation of capital
		allow funds to move from people who lack productive investment opprtunities to people who have them
		improve the well being of consumers
		all of the above