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Banking

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Here's a few questions I'm stuck on...

What makes a stock liquid?

A. the reputation and financial strength of the corporations that issue them.

B. the fact that a secondary market exists for publicly traded stocks.

C. the fact that they are generally short term financial assets.


Why might a firm opt for long-term debt instead of equity?

A. the impact of U.S. tax laws.

B. the debt is always cheaper.

C. equity is always cheaper.

  • Banking -

    first: the NYSE is a secondary market, answer B.
    second: interest on debt is a tax deduction.

  • Banking -

    Thanks Bob appreciate it!

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