Capital Allocation & Financial Markets

New securities are transacted at a secondary market

• True

• False

Is money market a short term or long term instrument?

• short term

• long term

Which of the following does not affect the value of the company’s stock price?

• Dividend policy

• Timing of cash flow

• Employee’s CPF contribution

• Degree of risks in projects undertaken

Financial intermediaries make an investment more convenient but less efficient

• True

• False

Financial intermediaries such as banks and mutual funds help transfer capital from those with a surplus of funds to those who need capital.

• True

• False

Capital market is a long term instrument

• True

• False