Financial Awareness - Risk, Stability & Emerging Finance
Which of the following statements about the Secondary Market is INCORRECT?
Which of the following statements about the Secondary Market is INCORRECT?
medium Q5 of 15
Step-by-Step Solution
Step 1: Understand Secondary Market functions
The Secondary Market facilitates trading of existing securities, providing liquidity and price discovery.Step 2: Identify incorrect statement
Issuance of new securities is a Primary Market function, so this statement is incorrect for the Secondary Market.Final Answer:
It involves issuance of new securities by companies → Option AQuick Check:
New securities issuance = Primary Market only ✅
Quick Trick: New securities issuance only in Primary Market.
Common Mistakes:
- Assuming Secondary Market issues new shares.
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