If there were no secondary markets for trading between investors, there would be no primary market for the initial sale of securities.

Question

Quizplus · Accepted Answer

Secondary markets allow for the buying and selling of securities after their initial sale in the primary market. Without secondary markets, there would be no way for investors to sell their securities, which would make initial sales in the primary market much less desirable for issuers.

If There Were No Secondary Markets for Trading Between Investors