Asked by Logan Jordan on Jul 17, 2024

verifed

Verified

The best definition of capital markets is:

A) The possibility of conflicts between shareholders and management in a large corporation.
B) The process of planning and managing a firm's long-term investments.
C) A venue where long-term debt and equity securities are bought and sold.
D) The purchase or sale of securities whose value derives from the price of another, underlying, asset.
E) A venue where buyers and sellers of capital equipment come together to trade such assets.

Capital Markets

Capital markets are venues where savings and investments are channeled between suppliers who have capital and those who are in need of capital.

Long-Term Debt

Debt that is due for repayment more than one year into the future.

Equity Securities

Financial assets representing ownership interest in a company, such as stocks, that provide voting rights and potential dividends.

  • Identify the distinctions between primary and secondary markets along with their functionalities.
verifed

Verified Answer

MB
Malyuun Boqorada CidaJul 24, 2024
Final Answer :
C
Explanation :
Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold. They are crucial for raising capital, allowing businesses and governments to fund long-term investments.