Which of the following statements about the

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9. Which of the following statements about the characteristics of debt and equity are true? a. They can both be long-term financial instruments. b. They can both be short-term financial instruments. c. They both involve a claim on the issuer’s income. d. Both (a) and (b) of the above. e. Both (a) and (c) of the above. 10. Which of the following statements about the characteristics of debt and equity are true? 11. Which of the following statements about financial markets and securities are true? called dividends to the firm’s residual claimants. year. instrument’s expiration date. 12. Securities are _____ for the person who buys them, but are _____ for the individual or firm that issues them. 13. Which of the following are secondary markets? a. The New York Stock Exchange b. The U.S. government bond market
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c. The over-the-counter stock market d. The options markets e. All of the above 14. Secondary markets make financial instruments more 15. The higher a security’s price in the secondary market market. market. market. market. secondary market prices have no effect on the funds a firm can raise. 16. Which of the following assets is traded only in an over-the-counter market? 17. Which of the following statements about financial markets and securities are true? a. Many common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at organized stock exchanges such as the New York Stock Exchange. b. As a corporation gets a share of the broker’s commission, a corporation acquires new funds whenever its securities are sold. c. Capital market securities are usually more widely traded than shorter- term securities and so tend to be more liquid. d. All of the above are true.
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