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Which of the following statements regarding derivative securities is incorrect ? A. Derivative securities are sophisticated and dynamic risk management instruments and have no direct
Which of the following statements regarding derivative securities is incorrect?
A. Derivative securities are sophisticated and dynamic risk management instruments and have no direct bearing on the firms financing (stock or bond financing).
B. All derivative securities are traded in organized exchanges.
C. Typical types of derivative securities include forward contracts, futures, options, and swaps.
D. The main purposes of using derivative securities are hedging (risk management) and speculation (active risk-taking investment).
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