A good secondary market is important to the efficiency of the primary market.

Question

Quizplus · Accepted Answer

A secondary market allows investors to buy and sell securities after they have been initially issued in the primary market. This increases liquidity and can help to determine market prices. In turn, an efficient secondary market can boost the effectiveness of the primary market as investors are more confident in their ability to buy and sell securities as needed.

A Good Secondary Market Is Important to the Efficiency of the Primary