Final answer:
Customers, suppliers, unions, and local governments are not capital market stakeholders; this statement is false. Capital market stakeholders are primarily involved with financial securities, such as stocks and bonds. Option b
Step-by-step explanation:
The statement that customers, suppliers, unions, and local governments are examples of capital market stakeholders is false. Capital market stakeholders typically refer to parties involved in the buying, selling, and holding of stocks, bonds, and other financial securities.
Key participants in the capital market include firms in the financial market, households in the financial market, and other investors looking for investment returns.
Customers, suppliers, unions, and local governments are more appropriately considered stakeholders in the broader business environment, rather than specifically in the capital market. For instance, customers and suppliers are primarily part of the goods market, unions are stakeholders in the labor market, and local governments interact with businesses in various capacities that span beyond the financial scope.
On the other hand, in the financial capital market, households, acting as financial capital suppliers, invest their savings to earn a return. This is facilitated by financial markets which include stocks, bonds, bank loans, and other financial investments. These markets allow the inflow of funds from households to be transformed into the assets financial capital demanders are seeking. Option b