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What is the main function of financial market intermediaries in the context of firm restructuring and liquidation?
  • a)
    Issuing new shares for distressed firms
  • b)
    Trading in government securities
  • c)
    Aggregating information on displaced capital and buyers
  • d)
    Providing venture capital for startups
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the main function of financial market intermediaries in the co...
Financial market intermediaries play a role in restructuring and liquidation of firms by aggregating information on displaced capital (assets) and potential buyers. They act as matchmakers between savers and firms in the credit market, facilitating the efficient reallocation of assets.
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What is the main function of financial market intermediaries in the context of firm restructuring and liquidation?a)Issuing new shares for distressed firmsb)Trading in government securitiesc)Aggregating information on displaced capital and buyersd)Providing venture capital for startupsCorrect answer is option 'C'. Can you explain this answer?
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