If the company is issuing and trading new securities, such as stocks and bonds, which financial market is the company trading?a.Foreign exchange marketb.Money marketc.Derivatives marketd.Capital market
Question
If the company is issuing and trading new securities, such as stocks and bonds, which financial market is the company trading?a.Foreign exchange marketb.Money marketc.Derivatives marketd.Capital market
Solution
The company is trading in the Capital Market. This is because the capital market is where long-term securities such as stocks and bonds are bought and sold. These are often issued by companies to raise capital for new projects or ongoing operations.
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