5. Segments and efficiency of the financial markets Today\'s financial markets c

Question

5. Segments and efficiency of the financial markets Today's financial markets can be dfferentiated and segmented according to a variety of characteristics, including the types and maturities of the securities traded, who receives the proceeds of the sale, and the mechanisms used to operate the markets. A- transactions, and indicate which of each category of markets best describes the transaction. Thus, select equity or debt primary Consider the folilowing or secondary, and capital or money for each transaction. Debt or Equity Prary or Secondary Capital or Money Market Transaction Market Market Edinborough Exports, Inc. just announced the public sale of its (? first 250,000 shares of common stock in the over-the-counter market Seattle Seafood Company is selling a new issue of one-year notes. Riley calls her broker and instructs her to immediately purchase 1,000 shares of Detroit Diesel Services, Inc., which is traded on the New York Stock Exchange. Grade It Now Save & Continue Continue without saing

Explanation / Answer

For first case the company plans to make public sale of its shares this would be related to debt or equity market as eqity is being issued by the company for raising funds.

For second case the company is selling notes which are issued in primary or secondary market.

For third case Riley calls her broker and instructs to purchase the shares is capital or money market.

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