Posted by Jason on Friday, July 25, 2008 at 2:33pm.
the financial markets allocate capital to corporations by
A. reflecting expectations of the market participants in the prices of the corporation's securities
B. requiring higher returns from companies with lower risk than their competitors
C. rewarding companies with expected high returns with lower relative stock prices
D. relying on the opinion of investment bankers
finalcial markets bring companies with surplus money together with companies that need money. Fincial banking houses buy securities from companies that need money and the resell the securities to company with surplus money in a fincial market. I don't think the market allocates capital to corporations....I think the banking houses buy corporate securities.....
I like A as the best answer....
reflecting expectations of the market participants in the prices of the corporation's securities
Is this correct???
- finance (capital to corporations) - manish, Saturday, October 30, 2010 at 9:39am
'A' is the answer
Answer this Question
Related Questions
finance 32 - 32. the financial markets allocate capital to corporations by A. ...
Financial Management - 1. The financial markets allocate capital to corporations...
finance - Define the following terms and identify their role in finance: 1. ...
finance - The Nutrex Corporation wants to calculate its weighted average cost of...
financial - why is it important for people to know all about money and capital ...
accounting - Refer to Target Corporation's financial statements Target ...
Business - What does global implication mean in relation to sole proprietorship...
Finance - There are various stakeholders in an organization. The two key ...
Corporate Finance - Calculating Cost of Equity. Bohannon Corporation's ...
finance - The Nutrex Corporation wants to calculate its weighted average cost of...
For Further Reading
