Asked by Deandra Kirkland on May 13, 2024
Verified
The initial sale of a security is a primary market transaction. Subsequent sales between investors are in the secondary market.
Primary Market
A part of the capital market where new securities are initially sold to investors, typically through underwriting.
Secondary Market
A market where previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.
- Recognize the role and characteristics of primary and secondary markets in securities trading.
Verified Answer
NG
Nicole GleavesMay 16, 2024
Final Answer :
True
Explanation :
This is a correct definition of primary and secondary markets. Primary market is where newly issued securities are sold to initial investors, while secondary market is where those securities are resold among investors.
Learning Objectives
- Recognize the role and characteristics of primary and secondary markets in securities trading.