Which of the following classification pairs best describes financial markets based on whether they are "new" or "used" securities?
A)money vs. capital
B)primary vs. secondary
C)spot vs. future
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

The classification of "new" or "used" securities is best captured by the distinction between primary and secondary markets. The primary market is where new securities are issued and sold for the first time, while the secondary market is where previously issued securities are bought and sold. The other options - money vs. capital markets and spot vs. future markets - refer to different characteristics of financial markets and do not directly address the "new" or "used" status of securities.

Which of the Following Classification Pairs Best Describes Financial Markets