Which one of the following statements is correct?
A)All secondary markets are dealer markets.
B)All secondary markets are broker markets.
C)All stock trades between existing shareholders are secondary market transactions.
D)All stock transactions are secondary market transactions.
E)All Dutch auction sales are secondary market transactions.

Question

Quizplus · Accepted Answer

Secondary markets are where already issued securities are traded between investors, and not sold directly by the issuing company. Stock trades between existing shareholders involve the transfer of already issued securities, making them secondary market transactions. Choices A, B, D and E are incorrect because not all secondary markets involve dealers or brokers, nor are all stock transactions or Dutch auction sales necessarily secondary market transactions.

Which One of the Following Statements Is Correct