The efficiency of direct financing depends largely on the performance of secondary markets.

Question

Quizplus · Accepted Answer

Secondary markets allow investors to buy and sell securities, which helps determine their value and liquidity. A highly efficient secondary market can provide a mechanism for investors to easily buy and sell securities, which can lead to lower transaction costs and reduced information asymmetry, increasing the efficiency of direct financing.

The Efficiency of Direct Financing Depends Largely on the Performance