Question

1. A General Motors Acceptance Corporation (GMAC) share trades on the New York Stock Exchange (NYSE). In which type of market is it traded? _____ A) A domestic market

B) A foreign market

C) An external market

D) A segmented market

Please explain each choice: Why this one is right and why the else are wrong?

Answer 1

1. A domestic market, also referred to as an internal market or domestic trading, is the supply and demand of goods, services, and securities within a single country, so answer A is correct.

2. Foreign markets are any markets outside of a company's own country.

3. A mechanism for trading securities that at issuance (1) are offered simultaneously to investors in a number of countries and (2) are issued outside the jurisdiction of any single country.

4. Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics