Question 5 What are the differences between equity and debt markets? Which statement is not correct? In the event of bankruptcy, the equity holders are paid at the end and there's usually nothing left. if a firm is running well, equity holders benefit directly from any increases in the corporation's prohtability or asset value. The corporation must pay all its debt holders before it pays its equity holders. Equity holders are called residual claimant; debt holders are called fixed claimants. Debt holders gain more if the firm is operating well and have increased profit or asset value. Compare with capital market securities, money markets securities have the following features: 1. Mature in one year or less II. Have little chance of loss of principal III. Must be guaranteed by the federal government IV. Have high expected return II and IV O I, III, and IV O I, II, and III I and 11 I and II Question 5 What are the differences between equity and debt markets? Which statement is not correct? In the event of bankruptcy, the equity holders are paid at the end and there's usually nothing left. if a firm is running well, equity holders benefit directly from any increases in the corporation's prohtability or asset value. The corporation must pay all its debt holders before it pays its equity holders. Equity holders are called residual claimant; debt holders are called fixed claimants. Debt holders gain more if the firm is operating well and have increased profit or asset value. Compare with capital market securities, money markets securities have the following features: 1. Mature in one year or less II. Have little chance of loss of principal III. Must be guaranteed by the federal government IV. Have high expected return II and IV O I, III, and IV O I, II, and III I and 11 I and