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11 January, 22:41

Which of the following statements is TRUE? A. All secondary markets are dealer markets. B. All secondary markets are broker markets. C. All stock trades between existing shareholders are secondary market transactions. D. All stock transactions are secondary market transactions.

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  1. 11 January, 23:04
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    The correct answer is option C.

    Explanation:

    A secondary market is a market where investors buy and sell securities that they already own. Though the most commonly traded security in the secondary market is stock, other types of assets are traded as well.

    Stocks are initially issued in the primary market as initial public offering or IPO. The existing stocks are then bought and sold in the secondary market. So not all stock transactions are secondary market transactions, only the existing are.
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Home » Business » Which of the following statements is TRUE? A. All secondary markets are dealer markets. B. All secondary markets are broker markets. C. All stock trades between existing shareholders are secondary market transactions. D.
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