Asked by Cameron McKenzie on May 12, 2024
Verified
Which of the following statements is false?
A) Nearly all of the money that flows into the stock market goes directly to the corporation issuing the stock and ends up as new plant and equipment.
B) New stock offerings and initial public offerings raise about $200 billion a year,most of which finances capital spending.
C) Nearly all of the money that flows into the stock market buys stock that has already been issued.
D) Bondholders lend money to a company and are therefore creditors rather than owners.
Stock Market
A collection of markets and exchanges where the buying, selling, and issuance of shares of publicly held companies take place.
Initial Public Offerings
The process where a private company offers shares of stock to the public for the first time.
- Determine the aspects that impact financial investment decision-making.
Verified Answer
BR
Brittany ReneeMay 18, 2024
Final Answer :
A
Explanation :
While some of the money that flows into the stock market may end up as new plant and equipment for the corporation, it is not accurate to say that nearly all of it goes directly to the corporation issuing the stock. Some of the money may go to brokers, investors, or other parties involved in the transaction.
Learning Objectives
- Determine the aspects that impact financial investment decision-making.