All of the following are advantages of secondary markets EXCEPT that they
A) provide liquidity to individuals holding the securities.
B) support the primary market by reducing the required rate of return due to the lower liquidity risk for securities.
C) provide price discovery for corporations selling seasoned securities.
D) impact market efficiency and price volatility.
E) All of these are correct.

Question

Quizplus · Accepted Answer

All the options listed are indeed advantages of secondary markets. They provide liquidity, support the primary market by reducing liquidity risk, facilitate price discovery, and impact market efficiency and price volatility.

All of the Following Are Advantages of Secondary Markets EXCEPT