The liquidity of secondary markets is NOT demonstrated by:
A)the daily turnover
B)the sale of securities by issuers at an acceptable price
C)the size of the bid-ask spread
D)the degree of price resilience.
E)Any of these.

Question

Quizplus · Accepted Answer

The liquidity of secondary markets is not demonstrated by the sale of securities by issuers at an acceptable price because the issuer is not part of the secondary market, but rather the primary market where securities are issued for the first time. The liquidity of secondary markets is demonstrated by factors such as daily turnover, bid-ask spread, and price resilience.

The Liquidity of Secondary Markets Is NOT Demonstrated By