Which of the following transactions takes place in the secondary market? An investor buying:
A) 500 shares of an IPO.
B) a newly issued municipal bond.
C) 500 shares of stock in his online brokerage account.
D) a U.S. Treasury bill through the government auction.

Question

Quizplus · Accepted Answer

The secondary market involves the buying and selling of securities that have already been issued. In option C, an investor buying 500 shares of stock in his online brokerage account is participating in the secondary market, as these shares have already been issued and are being traded among investors. Options A, B, and D involve the initial issuance of securities, which takes place in the primary market.

Which of the Following Transactions Takes Place in the Secondary