Question

Which of the following can be described as involving direct finance? a. A corporation's stock is traded in an over-the-counter market between fund managers. b. A pension fund manager buys

government debt in the secondary market from an insurance company. c. An insurance company buys a bank's common stock in the exchange traded market from another insurance company. d. A bond fund manager buys bonds issued by a large retail clothing corporation.

Fig: 1

Fig: 2