Asked by Isabella Garcia on Jul 04, 2024
Verified
Stock exchanges and over-the-counter markets where investors can trade their securities with others are known as:
A) prediction markets.
B) secondary markets.
C) primary markets.
D) futures markets.
E) foreign exchange markets.
Over-The-Counter Markets
A decentralized market where securities are traded directly between parties without the supervision of an exchange, often involving smaller, less conventional companies.
Stock Exchanges
Marketplaces where securities, such as stocks and bonds, are bought and sold by participants.
- Distinguish between primary and secondary markets.
Verified Answer
JR
Jessica RiveraJul 08, 2024
Final Answer :
B
Explanation :
Secondary markets are where investors buy and sell securities they already own, such as stocks and bonds, with other investors. This is distinct from primary markets, where securities are first issued and sold by the issuing entity to investors.
Learning Objectives
- Distinguish between primary and secondary markets.
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