Secondary market trading in equity securities is many times the size of the primary market, whereas for debt securities it is the opposite.

Question

Quizplus · Accepted Answer

In equity markets, secondary market trading volume significantly exceeds primary market issuance as stocks are traded more frequently among investors. Conversely, in debt markets, the primary market is often larger because debt securities, such as bonds, are issued in large volumes and may not be traded as frequently in the secondary market.

Secondary Market Trading in Equity Securities Is Many Times the Size