Investors in financial assets receive several benefits from a secondary market including:
A) Liquidity of their assets.
B) Information about the assets' fair values.
C) Lower search and transactions costs.
D) a and b only.
E) All of the above.

Question

Quizplus · Accepted Answer

Investors benefit from a secondary market in several ways: liquidity of their assets allows them to buy and sell quickly; they receive information about the assets' fair values through market pricing; and they experience lower search and transaction costs due to the organized nature of these markets.

Investors in Financial Assets Receive Several Benefits from a Secondary