Company needs infusion of cash to invest in new project

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Reference no: EM131949724

1. ABC Corp. went public 3 years ago, but the company needs an infusion of cash to invest in a new project. The company decides to issue 500,000 new shares, which will trade on NASDAQ, to finance their project. Which of the following statements is true regarding this situation?

Anyone who purchases these shares on the day they're available to the public would be participating in a money market transaction.

Anyone who purchases these shares on the day they're available to the public would be participating in a secondary market transaction.

Anyone who purchases these shares on the day they're available to the public would be participating in a broker market.

None of the above

2. Which of the following is not an economic function of mutual funds?

Exploit economies of scale in trading and transaction costs

Provide an barrier between the individual investor and the abrupt changes of the marketplace

Beat the market on every occasion

Provide the individual investor with the professional expertise necessary to earn abnormal returns through successful analysis of securities

Provide the individual investor the opportunity to diversify

Reference no: EM131949724

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