While the stock market has an active secondary market, the bond market consists primarily of investors who buy and hold bond issues to maturity.

Question

Quizplus · Accepted Answer

The bond market is heavily dominated by institutional investors. Bond investors are not constantly changing their portfolios with each new action of the corporation. Many institutional investors, such as insurance companies, are not active bond traders in existing issues but, instead, buy and hold bonds to maturity.

While the Stock Market Has an Active Secondary Market, the Bond