Asked by reddy chittamuru on Jul 04, 2024
Verified
The trading of a corporation's shares on the secondary market has no impact on the corporation's financial position.
Secondary Market
The marketplace where investors buy and sell securities or assets from other investors, rather than from the issuing companies directly.
- Elucidate the effects of stock transactions on a company, focusing on changes to share capital and the overall financial health.
Verified Answer
MP
morgan pelleyJul 08, 2024
Final Answer :
True
Explanation :
When shares are traded on the secondary market, it involves transactions between investors, and the corporation itself does not receive any new funds from these transactions. The financial position of the corporation is not directly affected by such trading.
Learning Objectives
- Elucidate the effects of stock transactions on a company, focusing on changes to share capital and the overall financial health.
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