- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 1. The Functions of the Financial System
CFA Practice Question
How does the financial system facilitate raising equity capital?
II. Many analysts cover the stocks companies have issued.
III. Accounting standards are established to ensure the production of meaningful financial statements.
I. Investment banks help companies issue equities.
II. Many analysts cover the stocks companies have issued.
III. Accounting standards are established to ensure the production of meaningful financial statements.
Correct Answer: I, II and III
Shareholders can easily divest their investments as desired.
User Contributed Comments 2
| User | Comment |
|---|---|
| ibrahim18 | Confusing options. |
| agogoi | Option III seems indirect and far-fetched for the reasoning |