When a person buys a stock on a stock exchange they are participating in
A)The money market
B)The primary financial market
C)The secondary financial market
D)Both the primary and secondary financial markets
E)None of the above

Question

Quizplus · Accepted Answer

When a person buys a stock on a stock exchange, they are participating in the secondary financial market. This is because they are buying shares of a company that were previously sold by the company in the primary financial market. The secondary market is where these previously issued shares are bought and sold among investors. The money market refers to short-term debt securities, and the primary financial market is where initial public offerings (IPOs) take place.

When a Person Buys a Stock on a Stock Exchange