Which of the following statements is CORRECT?

Question

BlackTom AI · Accepted Answer

The question asks which statement is CORRECT, but the provided data shows no list of answer choices to evaluate beyond the single statement given in the 'answer' field.

The only stated option is: 'Capital market instruments include both long-term debt and common stocks.'

To analyze the claim: in financial markets, capital markets are designed for raising long-term capital, typically through instruments such as long-term debt (e.g., bonds, debentures) and equity (e.g., common stocks). This distinguishes capital markets from money markets, which deal with short-term funds. Therefore, the assertion that capital market instruments include both long-term debt and common stocks aligns with standard definitions: long-term debt represents fixed-income securities issued to borrow money for longer horizons, while common stocks represent ownership stakes and are traded in these markets.

If there were competing statements, we would assess them by checking whether they correctly identify that capital markets are for long-term financing and include both debt and equity instruments.

Because no alternative options are presented to compare, the evaluation is limited to validating the provided statement against fundamental definitions: it is correct to say that capital market instruments include long-term debt and common stocks.

Which of the following statements is CORRECT?

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