[Solved] The secondary market in the capital market refers to: — Ans: Market where existing securities are traded among investors | Financial Awareness

Financial Awareness - Risk, Stability & Emerging Finance

The secondary market in the capital market refers to:

AMarket where new securities are issued for the first time

BMarket where existing securities are traded among investors

CMarket for government securities only

DMarket for foreign currency exchange

Step-by-Step Solution

Step 1: Understand primary vs secondary market
Primary market issues new securities; secondary market trades existing securities.
Step 2: Analyze options
Market where existing securities are traded among investors correctly defines the secondary market. Other options describe primary market, government securities market, and forex market respectively.
Final Answer:
Market where existing securities are traded among investors → Option B
Quick Check:
Secondary market = trading existing securities ✅

Quick Trick: Mnemonic: Primary Issues New, Secondary Trades Old.

Common Mistakes:

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