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13.Which function of the capital market involves the creation of a secondary market for existing securities?  A. Mobilization of savings  B. Price determination  C. Facilitating company growth  D. Risk mitigation

Question

13.Which function of the capital market involves the creation of a secondary market for existing securities?  A. Mobilization of savings  B. Price determination  C. Facilitating company growth  D. Risk mitigation

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Solution

The function of the capital market that involves the creation of a secondary market for existing securities is A. Mobilization of savings. In the secondary market, investors buy and sell securities that were previously issued. The proceeds of these sales go to the investors, not the issuing company, thus mobilizing savings by allowing investors to free up capital.

Similar Questions

Which of the following is an objective of the Capital Market?  A. Ensuring stability in the financial system  B. Promoting international trade  C. Providing short-term financing to businesses  D. Mobilizing long-term savings for investment

27.The primary objective of the capital market?  A. Profit maximization for investors  B. Facilitating the transfer of funds from savers to investors  C. Short-term capital gains  D. Promoting speculative trading

Which one of the following indicates the role of Capital Market?  A. Facilitating short-term borrowing and lending  B. Regulating interest rates  C. Financing government budget deficits  D. Managing foreign exchange reserves

one of the key functions of the capital market in the economy?  A. Encouraging hoarding of financial resources  B. Creating monopolistic control over financial assets  C. Allocating financial resources to their most productive uses  D. Restricting access to investment opportunities

5.the capital market primarily aim to achieve?  A. Providing government subsidies  B. Facilitating consumer loans  C. Allocating financial resources efficiently  D. Controlling inflation rates

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