Secondary financial markets are similar to:
A) direct auction markets.
B) new-car markets.
C) used-car markets.
D) direct financial market.

Question

Quizplus · Accepted Answer

Secondary financial markets involve the trading of existing financial instruments, such as stocks and bonds, much like the buying and selling of used cars in a used-car market. Direct auction markets and direct financial markets involve the trading of new financial instruments, while new-car markets involve the sale of physical goods rather than financial assets.

Secondary Financial Markets Are Similar To