Question

If you sold shares of Wal-Mart through an online broker, your transaction would occur in which...

If you sold shares of Wal-Mart through an online broker, your transaction would occur in which type of market?

A.) Primary Capital Market

B.)Secondary capital market

c.) primary money market

d.) secondary money market

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Homework Answers

Answer #1

The Correct Answer is B

Let us first understand the other options

Now, what happens in Money Market - Trading of Loans and other short Term Instruments between banks and Financial institutions is what happens in a money market. Since shares does not fall into the loan category of instruments, therefore option C and D are incorrect.

Listing of Securities or shares for the first time in an exchange is called Primary Capital Market. However purchase and sale of already listed securities is what that takes place in Secondary Mraket and therefore the correct answer is B  

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