What type of financial market is utilized for long-term assets that are held for greater than one year?

Prepare for the WGU Finance Skills for Managers Exam with study resources including flashcards and multiple-choice questions. Get ready to pass!

The capital market is utilized for long-term assets that are held for greater than one year. This market encompasses the buying and selling of financial securities such as stocks and bonds, which are typically used to fund long-term investments and projects. Companies seeking to raise capital for expansion or to finance large projects often issue long-term securities in the capital market.

In this context, the capital market plays a crucial role in providing businesses with the necessary funding to operate and grow over time. Investors in the capital market are usually looking for returns on their investments over a longer horizon, often several years, which aligns with the characteristics of long-term assets.

The other markets mentioned serve different purposes. The money market, for instance, is focused on short-term debt instruments that typically have maturities of less than a year, making it unsuitable for long-term assets. The forex market deals with the exchange of currencies, which does not pertain to the holding of long-term assets. Similarly, the commodity market focuses on the trading of physical goods, such as metals or agricultural products, rather than financial securities or investments tied to long-term asset ownership.

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