Question

Which of the following statements is CORRECT? Group of answer choices The New York Stock Exchange is an auction market with a physical location. Capital market transactions involve only the purchase and sale of equity securities, i.e., common stocks. If an investor sells shares of stock through a broker, then this would be a primary market transaction. Consumer automobile loans are evidenced by legal documents called "promissory notes," and these individual notes are traded in the money market. While the distinctions are blurring as investment banks are today buying commercial banks, and vice versa, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties.

Answer 1

Answer: The New York Stock Exchange is an auction market with a physical location.

Explanation:

In an Auction Market, Competitive bidding of securities is constantly taking place. Buyers submit the prices they are willing to buy securities at and sellers submit the prices that they are willing to sell their securities at simultaneously. The price that they then settle on is the lowest price that the Seller would like to sell at and the highest price that the buyer would prefer to buy at.

This is what happens on the New York Stock Exchange which is located on Wall Street making the NYSE an Auction Market with a physical location.