Question

Fultz Home Furnishings is considering issuing stocks or bonds to raise money to purchase a new manufacturing facility. If they want to issue securities in small denominations, which type of security should they choose?

a. only bonds
b. neither stocks nor bonds
c. either stocks or bonds
d. only stocks

Answer 1

Answer:

c. either stocks or bonds

Explanation:

Based on the information provided within the question it can be said that they can either choose stocks or bonds to issue. This is because both are securities that can be issued in small denominations. Since the company can create a set amount for both of these securities before offering them to the public, therefore controlling the denominations.