Which of the following is NOT true of stock markets?
A)Most of the trading takes place in already issued stock.
B)Every time a share of a company's stock changes hands, that company receives a payment.
C)The dollar volume of trading is less than the dollar volume of trading on bond markets.
D)They help carry out direct finance.

Question

Quizplus · Accepted Answer

When a share of a company's stock changes hands in the stock market, the company itself does not receive any payment. This transaction occurs between investors, and the company only receives funds during the initial public offering (IPO) or other such offerings, not in the secondary market trading.

Which of the Following Is NOT True of Stock Markets