Secondary markets are the key to the wealth creation process because they enable money to be transferred to those who can make the best use of it in terms of developing new real assets like houses and factories.

Question

Quizplus · Accepted Answer

Secondary markets facilitate the trading of existing securities between investors, which does not directly result in the funding of new real assets like houses and factories. Primary markets are where new securities are issued and funds are raised for the creation of new assets.

Secondary Markets Are the Key to the Wealth Creation Process