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1. Mr. Sumon is a general investor. He has observed that in the market there exists fixed earnings and
collateral based security of RK Company where purchase of it will give priority in receiving earnings but
cannot give its holder the right to participate in decision making. On the other hand, in the market there
exists similar matured and earnings based Govt. security where there is no collateral. Mr. Sumon, not
having collateral in the Govt. securities, invests in the security issued by RK Company.
A. What is financial market?
B. If maturity of any security is more than ten years, in which market it should be transacted? Explain.
C. According to stem, which type of security is sold by RK Company? Explain.
D. According to stem, justify the investment decision made by Mr. Sumon.