Question

Lisa is looking to purchase stock. After performing her research, she finds that using a stockbroker would be best for her. She calls her stockbroker and instructs him to purchase 200 shares of Apple common stock. This transaction occurs in the:

		Primary market
		Futures market
		Credit market
		Secondary market

Answer 1

Ans:- This transaction occurs in the Secondary market.

Secondary Market:- Secondary market is a market where securities or stocks are bought and sold by the investors which they already own. It is the place where the stocks are bought and sold post IPO or Primary market.

In the Primary market, stocks are issued for the first time. Future market is the place where futures contracts are bought and sold whereas in credit market debt securities such as bonds are traded. so the other three options are incorrect.

Therefore the correct option is the secondary market. option (d) is the right answer.