The key distinction between a primary market and a secondary market is that, in the secondary market, ________.

Question

Quizplus · Accepted Answer

In the secondary market, funds flow from the buyer of the asset to the seller. This is because the secondary market involves the trading of previously issued securities or assets, and the issuer does not receive any direct benefit from the transaction. The primary market, on the other hand, involves the issuance of new securities, and funds flow from the buyers of these new securities to the issuer.

The Key Distinction Between a Primary Market and a Secondary