Which of the following statements is CORRECT? The New York Stock Exchange is an

Question

Which of the following statements is CORRECT?

The New York Stock Exchange is an auction market with a physical location.

Capital market transactions involve only the purchase and sale of equity securities, i.e., common stocks.

If an investor sells shares of stock through a broker, then this would be a primary market transaction.

Consumer automobile loans are evidenced by legal documents called "promissory notes," and these individual notes are traded in the money market. While the distinctions are blurring as investment banks are today buying commercial banks, and vice versa, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties.

Explanation / Answer

The New York Stock Exchange is an auction market with a physical location - Correct As it has building and other tangible things

Other Statements are incorrect:

If an investor sells shares of stock through a broker, then this would be a primary market transaction. - Incorrect since it is secondary market.

Capital market transactions involve only the purchase and sale of equity securities, i.e., common stocks. - False - As bonds are also traded.

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