Which of the following applies to secondary markets Select o

Which of the following applies to secondary markets? Select one: A. Many investors might be unwilling to provide resources to corporations if there is no available mechanism for the future sale of their stocks and bonds to others. B. Transactions help to establish market prices for additional shares that may be issued in the future. O C. Transactions are important to the efficient allocation of resources in our economy. D. All of the above. Finish t

Solution

There are two types of market for the securities ,

Primary Market: When the first time shares are issued by the company to the public through IPO than this is called primary market.

Secondary MArket: When the shares are listed in the recognised stock exchange like NASDAQ, NiKKIE etc, trading of shares in these stock exchange is called secondary market .

In the secondary market stock are freely traded from investors to another investors and it will help to keep the price to maintained as per the growth of company and as per the growth of economy.

So the given all statements are correct.

Answer = Option D = All of the Above