Asked by Sepideh Rastin on May 06, 2024
Verified
Sales of most corporate and municipal securities are made via auctions.
Corporate and Municipal Securities
Financial instruments issued by corporations and local government entities, respectively, to raise capital by borrowing from investors.
Auctions
Competitive bidding processes where goods or services are sold to the highest bidder, commonly used for art, antiques, real estate, and online platforms.
- Elucidate the roles played by secondary markets and their definition.
Verified Answer
BO
Becca OlorunfemiMay 12, 2024
Final Answer :
False
Explanation :
Most corporate and municipal securities are sold through negotiated sales or through broker-dealers, not via auctions. Auctions are more commonly associated with Treasury securities.
Learning Objectives
- Elucidate the roles played by secondary markets and their definition.