An important function of secondary markets is to
A)make it easier to sell financial instruments to raise funds.
B)raise funds for corporations through the sale of securities.
C)make it easier for governments to raise taxes.
D)create a market for newly constructed houses.

Question

Quizplus · Accepted Answer

Secondary markets provide liquidity to investors by making it easier for them to sell their financial instruments, such as stocks and bonds, to raise funds. This enhances the attractiveness of these instruments and creates more demand for them, making it easier for corporations and governments to raise funds. However, the sale of newly constructed houses is typically done in the primary market, rather than the secondary market.

An Important Function of Secondary Markets Is to