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Which of the following statements regarding secondary markets is least accurate? Secondary markets are important because...

Which of the following statements regarding secondary markets is least accurate? Secondary markets are important because they provide:

  

investors with liquidity.

No answer text provided.

firms with greater access to external capital.

regulators with information about market participants.

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Answer #1

D.regulators with information about market participants.

Secondary markets are important because they provide liquidity and continuous information to investors. The liquidity of the Secondary markets adds value to both the investor and firm because more investors are willing to buy issues in the primary market, when they know these issues will later become liquid in the secondary market. Therefore, the secondary market makes it easier for firms to raise external capital.

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