ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a. Secondary market
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b. Primary market
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c. Financial markets.
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Money market
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Detailed explanation-1: -Equity share and Preference share are the two types of share that a company issues. Equity share is an ordinary share. Preference share experience the perquisites of the dividend distribution first. The equity stockholders get the opportunity to cast their vote in major business decisions.
Detailed explanation-2: -Secondary market helps existing investors to dis-invest and fresh investors to enter the market. The secondary market is also known as the stock market or stock exchange, which is the market for the purchase and sale of existing securities.
Detailed explanation-3: -Moreover, secondary markets create additional economic value by allowing more beneficial transactions to occur and create a fair value of an asset. Secondary markets also provide liquidity to the economy as sellers can sell quickly and easily due to a large number of buyers in the market.