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1 FINANCE MCQS

The market value of outstanding instruments in the capital market depends on __________?

  • Primary cash flows
  • Number of issued securities
  • Market prices of securities
  • Both B and C
Correct Answer: D. Both B and C

Detailed Explanation

The market value of outstanding instruments in the capital market depends on two key factors: the number of issued securities and the current market prices of those securities. A higher quantity of securities or an increase in their market price raises the total market value of outstanding instruments.

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