Type of financial markets in which corporations issues new funds to raise funds is classified as

A flow market
B primary markets
C secondary markets
D funding markets

Correct Answer: primary markets

Type of financial markets in which corporations issues new funds to raise funds is classified as primary markets. The primary market is where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an example of a primary market.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

Markets in which new securities are issued by corporations to raise funds are called
A primary markets
B secondary markets
C Gross markets
D proceeds markets
Markets in which corporations raise capital for creating market transaction which are classified as
A commercial markets
B residential markets
C primary markets
D consumer credit loans
Funds demand which is pushed by users of funds in financial markets are classified as
A supply of loan-able funds
B demand of loan-able funds
C compounded funds
D savings funds
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called.
A commodity markets
B fund-available markets
C derivative exchange markets
D financial markets
Markets which bring closer institutions needing funds and with surplus funds are classified as
A financial markets
B corporate institutions
C hedge firms
D retirement planners
Financial corporations which serve individual savers and commercial mortgage borrowers are classified as
A savings associations
B loans associations
C preferred and common associations
D savings and loans associations
Situation in which claims by financial institutions than claims issued by corporations is more considerable for investors is classified as
A asset transformers
B liability transformers
C issuing transformers
D claiming transformers
Financial instrument which is used to raise funds for working capital is considered as
A commercial paper
B commercial notes
C notes payable
D notes receivable
__________ strategy is often considered as entrepreneurial strategy where firm develops and introduce new products and markets or penetrate markets to build share
A Expansion Strategy
B Retrenchment Strategy
C Combination Strategy
D Stability Strategy
Markets which reallocate liquid funds in relatively fixed amounts are classified as
A capital markets
B debt markets
C secondary markets
D primary markets

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