Secondary markets help support primary markets because secondary markets
I. offer primary market purchasers liquidity for their holdings.
II. update the price or value of the primary market claims.
III. reduce the cost of trading the primary market claims.
A)I only
B)II only
C)I and II only
D)II and III only
E)I,II,and III

Question

Quizplus · Accepted Answer

Secondary markets support primary markets in several ways: by providing liquidity to investors (allowing them to sell their holdings easily), updating the price or value of the securities (reflecting current market conditions and information), and reducing the cost of trading (through increased efficiency and competition).

Secondary Markets Help Support Primary Markets Because Secondary Markets