I did them just want to make sure I am clear. Which of the following statements

Question

I did them just want to make sure I am clear.

Which of the following statements is correct?
a) A corporation receives a monetary payment every time its shares of stock are traded by stockholders on organized stock exchanges.
b) When a corporation sells bonds as a means of raising funds it is engaging in debt finance.
c)A share of stock is an IOU.
d) The two most important financial markets in the economy are the stock market and financial intermediaries.

My answer is (c)

8. The prices of stock traded on exchanges are determined by
a) the Corporate Stock Administration.
b) the administrators of NASDAQ.
c)the supply of, and demand for, the stock.
d) All of the above are correct.
My answer is (d)
Please check my work

Explanation / Answer

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#7:

A stock is actually not like an IOU. Holding a stock makes you a part-owner of the company your are holding stock for. By holding the stock, you are getting a portion of the firm's profits. A bond is an IOU because it specifies a specific amount of money you are owed by a certain time.

The correct answer is b

#8

The price of a stock is determined simply by the supply and demand for it. Not sure what the Corporate Stock Administration is, but it definitely does not control the price of a stock. Neither does NASDAQ, which is just a stock exchange. So its c.

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