Question

Which of the following statements is FALSE?

Select one:

a. Organized markets are financial markets in which contracts that provide its holder either the obligation or the choice to buy or sell a financial asset are traded.

b. None

c. OTC markets are financial markets whereby geographically dispersed traders are linked to one another via telecommunications systems and computers, trade in securities.

d. A secondary market is a financial market in which financial claims previously issued are exchanged.

.

Answer 1

Option C is correct

Statement c is FALSE

In OTC markets, the transaction happens directly between two parties. The statement in c describes an exchange.

Options a and d are incorrect because theser are TRUE statements.

1. Organized markets are financial markets in which contracts that provide its holder either the obligation or the choice to buy or sell a financial asset are traded. The securities traded in these markets are options and futures contract.

2. A secondary market is a financial market in which financial claims previously issued are exchanged. The transactions happen over an exchange. Ex: NYSE

1. .