Final answer:
The statements that are true regarding capital markets are: a) Secondary capital markets provide a source of liquidity for investors. b) Companies and governments use the secondary capital market to raise funds for their operations. c) Offering memorandums are used to provide details of new public issues in the capital market. d) The primary market is not only for shares and the secondary market is not only for bonds.
Step-by-step explanation:
A) Secondary capital markets provide a source of liquidity for investors. These markets allow assets to be sold back to the original issuer or to another person or group, providing a way for investors to quickly sell their investments without significant penalties. Examples of secondary capital markets include stock exchanges and bond markets.
B) Companies and governments use the secondary capital market to raise funds for their operations. By selling shares of stock or issuing bonds on the secondary market, companies and governments can obtain the capital they need for various purposes, such as expanding their business or financing public projects.
C) Offering memorandums are used to provide details of new public issues in the capital market. When a company wants to issue new shares of stock or bonds in the primary market, they prepare an offering memorandum that includes information about the company, its financials, and the terms of the offering.
D) The primary market is not only for shares and the secondary market is not only for bonds. Both primary and secondary markets can involve the buying and selling of various types of financial assets, including stocks, bonds, and other securities.