2. Which of the following statements is CORRECT?
a. The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically.
b. If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary market transaction.
c. An example of a primary market transaction would be your uncle transferring 100 shares of Walmart stock to you as a birthday gift.
d. Capital market instruments include both short-term and long-term debt.
e. While the two frequently perform similar functions, commercial banks generally specialize in lending money, whereas investment banks generally help companies raise large blocks of capital from investors.
Answer to the Question is Option E ) While the two frequently perform... View the full answer