Valerie bought 200 shares of Able stock today.Able stock has been trading for some time on the NYSE.Valerie's purchase occurred in which market?
A)Dealer market
B)Over-the-counter market
C)Secondary market
D)Primary market
E)Tertiary market

Question

Quizplus · Accepted Answer

The secondary market refers to the market where securities that are already issued and traded on the primary market (e.g. an initial public offering) are bought and sold among investors. Since Valerie is purchasing shares that have already been traded on the NYSE, her purchase occurred in the secondary market. The other options are not the best choice as they do not accurately describe the type of market where Valerie's purchase occurred. The dealer market is a type of secondary market where securities are traded directly between dealers, while the over-the-counter market refers to a decentralized market where securities are traded without a formal exchange. The primary market is where securities are initially issued, and the tertiary market is not a known financial term.

Valerie Bought 200 Shares of Able Stock Today