_____ is a market for the sale and purchase of existing securities
_____ is a market for the sale and purchase of existing securities
- A) primary markets
- B) money market
- C) secondary market
- D) capital market
Correct Answer: C) secondary market
Explanation
The question is asking us to identify the market where existing securities are sold and purchased. The options given are primary markets, money market, secondary market, and capital market.
The primary market is where new securities are issued for the first time, such as initial public offerings (IPOs). The money market is a market for short-term borrowing and lending, typically with maturities of one year or less.
The correct answer is option C: secondary market. The secondary market is where existing securities, such as stocks and bonds, are bought and sold among investors. This market provides liquidity to investors who want to sell their securities and provides opportunities for other investors to purchase them.
The capital market is a broader term that includes both the primary and secondary markets and refers to the market for long-term financial instruments such as stocks and bonds.
In summary, the market for the sale and purchase of existing securities is known as the secondary market. It is where investors can buy and sell securities from each other.