The trading of a corporation's shares on the secondary market has no impact on the corporation's financial position.

Name: The trading of a corporation's shares on the secondary market has no impact on the corporation's financial position.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

When shares are traded on the secondary market, it involves transactions between investors, and the corporation itself does not receive any new funds from these transactions. The financial position of the corporation is not directly affected by such trading.

The Trading of a Corporation's Shares on the Secondary Market