Question

Secondary Markets are:

Select one:

a.  Markets in which corporations raise funds through new issues of securities.

b. Markets that trades financial instruments once they are issued.

c. Markets that trade debt securities or instruments with maturities of one year or less.

d. Markets that trade debt and equity instruments with maturities of more than one year.

e. None of the above.

Answer 1

Solution:

Secondary markets are the market when financial instruments are traded once the instruments are issued. The stock market is an example of a secondary market.

Option A ) This is done through the primary market

Option B ) This is correct

Option C )This market is known as the money market where instruments of less than 1-year maturity are traded

Option D) This market is known as the capital market where debt and equity instruments with maturities of more than one year are traded.

Hence the correct option is B )