The stocks or shares that are sold to investors without transacting through financial institutions are classified as ______________?
Correct answer: A. direct transfer
- A. direct transfer
- B. indirect transfer
- C. global transfer
- D. pension transferTake Economics Courses
Explanation
A direct transfer occurs when securities move from the issuing company to investors without a financial intermediary arranging the transaction. An indirect transfer uses an institution such as a bank, mutual fund, or insurance company.
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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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