High-quality initial public offerings are usually sold in a primary market, such as the New York Stock Exchange. However, low-quality stocks must usually be sold in secondary markets, such as NASDAQ.

Question

Quizplus · Accepted Answer

This statement is false. Quality of the stock does not determine whether it is sold in a primary or secondary market. Both high-quality and low-quality stocks can be sold in either market depending on the company's preference and circumstances. Primary markets are where new issues of securities are first offered and sold to the public, while secondary markets are where existing securities are traded among investors. The NYSE and NASDAQ are both examples of secondary markets.

High-Quality Initial Public Offerings Are Usually Sold in a Primary