ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
How many times a security can be sold in a secondary market?
A
Only one time
B
Two time
C
Three times
D
Multiple times
Explanation: 

Detailed explanation-1: -The primary and secondary markets in India function as they do anywhere: In the primary market, the investor purchases shares or bonds directly from a company in a one-time transaction; in the Secondary Market, investors buy and sell the stocks and bonds among themselves, and can do so an infinite number of times.

Detailed explanation-2: -The correct answer is Secondary market.

Detailed explanation-3: -Equity shares, bonds, preference shares, treasury bills, debentures, etc. are some of the key products available in a secondary market.

Detailed explanation-4: -A secondary market is a market where existing securities or other assets are bought and sold. Primary markets are where an asset or security is first issued. There are many types of secondary markets, with stocks being the most commonly traded security in a secondary market.

There is 1 question to complete.