Question

Which of the following is true of a secondary market?

Select one:

a. It is a market in which short-term money market instruments such as Treasury bills are traded.

b. It is a market for an unlisted company to raise equity capital.

c. It is a market in which preowned securities are traded.

d. It is a market where securities are issued through private placement

Answer 1

Solution

Answer-It is a market in which preowned securities are traded.

In the secondary market the securities already issued are traded between buyers and sellers .The issuer cannot raise funds in this market

Wrong options

Treasury bills and other short term money instruments are traded in money market

Unlisted companies cannot raise funds in secondary markets

Securities cannot be issued in secondary market. They can be issued only in primary market

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