Creating prices for securities and allowing for liquidity are functions of

Question

Quizplus · Accepted Answer

The primary market is where securities are initially issued and sold to investors, while the secondary market is where those securities can be bought and sold among investors. Creating prices for securities and allowing for liquidity are functions of the secondary market, as this is where market participants determine the value of securities based on supply and demand, and where investors can easily enter or exit their positions. The third and fourth markets are subsets of the broader secondary market, with the third market referring to transactions between institutional investors, and the fourth market involving direct trades between buyers and sellers outside of traditional exchange platforms. The real estate market is a separate market altogether and not relevant to this question.

Creating Prices for Securities and Allowing for Liquidity Are Functions