Question
Why is a primary market important to issuers in a way a secondary market is not?
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Answer
Only primary-market sales send proceeds to the issuer.
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Question
Why is P/S useful when a company has negative earnings?
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Answer
Sales remain usable even when earnings are negative.
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Question
How does a dealer differ from a broker in securities markets?
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Answer
A dealer trades as principal; a broker matches clients for commission.
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Question
Why is intrinsic value not an objective fact?
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Answer
Different assumptions can produce different valuations.
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