Asked by Jaynese Jones on May 21, 2024

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Which of the following is an example of financing?

A) An investor purchases stocks and bonds
B) A company issues stock to raise money to purchase assets
C) An investors buys shares in a mutual fund to earn a return
D) An investor sells stocks and bonds

Financing

The process or means of providing funds for business activities, making purchases, or investing.

Purchase Assets

The act of acquiring property, equipment, or other valuable items that are expected to generate revenue or appreciate in value over time.

Mutual Fund

An investment program funded by shareholders that trades in diversified holdings and is professionally managed.

  • Familiarize with the practices companies implement to fund the purchase of assets.
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RS
Rashonda StickneyMay 22, 2024
Final Answer :
B
Explanation :
Financing involves raising funds or capital for a company, which can be done through issuing stocks, bonds, or other securities. Option B is an example of financing as the company is issuing stocks to raise funds for purchasing assets. Options A, C, and D involve buying or selling securities but do not involve a company raising funds, so they are not examples of financing.