2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the economy than primary markets." Do you agree with this argument? Why, or why not?

Question

Katherine Delacruz

Business

21 April, 02:17

2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the economy than primary markets." Do you agree with this argument? Why, or why not?

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Eden Donaldson · Answer 1

I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.

Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.