Which of the following is true regarding primary and secondary markets? A. Secondary markets sell old issues of securities. nothing B. Primary and Secondary markets both sell assets directly from the institutionnbsp that offers the bonds. C. Primary markets and secondary markets are identical

Question

Essence Fritz

Business

14 July, 09:32

Which of the following is true regarding primary and secondary markets? A. Secondary markets sell old issues of securities. nothing B. Primary and Secondary markets both sell assets directly from the institutionnbsp that offers the bonds. C. Primary markets and secondary markets are identical

+5

Answers (1)

Know the Answer?

Alia Rosales · Answer 1

A. Secondary markets sell old issues of securities.

Explanation:

The primary market is one in which the securities of a new issuance of the company are traded directly between the company and the investors. Securities and shares traded in the primary market may have long maturities. If the holder wants to renegotiate this type of security, he or she may resort to the secondary market.

The secondary market is where investors trade and transfer among themselves the securities that were issued by companies in the primary market, ie, where old securities are traded. It is an environment created to provide liquidity to securities issued in the primary market.