The sales of securities in the secondary market does not raise capital for the business whose stock is sold.

Name: The sales of securities in the secondary market does not raise capital for the business whose stock is sold.
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Question

Quizplus · Accepted Answer

The secondary market involves the buying and selling of securities (such as stocks) between investors, and the transactions do not involve the issuer of the securities (i.e. the business whose stock is being sold). Therefore, these sales do not raise capital for the issuer.

The Sales of Securities in the Secondary Market Does Not