In primary markets, the property of shares which made it easy to sell newly issued security is considered as ____________?
Correct answer: A. increased liquidity
- A. increased liquidity
- B. decreased liquidity
- C. money flow
- D. large funds
Explanation
Newly issued shares need liquidity so investors can sell them readily after purchase, and this property increases their attractiveness in the primary market. Large funds and money flow are effects or descriptions, not the relevant property.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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