A continuous security market
A) does not use middlemen.
B) requires the buyer and seller to meet physically.
C) trades outstanding securities.
D) is responsible for the issuance of new securities.

Question

Quizplus · Accepted Answer

A continuous security market trades outstanding securities, which means that the securities being traded have already been issued and are being bought and sold amongst investors. This type of market typically operates through intermediaries such as brokers, and trading can occur electronically or through physical trading floors. The other options are incorrect: A) Middlemen are often used in continuous security markets to facilitate trades. B) Location is not a determining factor for the operation of a continuous security market. D) The issuance of new securities is typically handled through primary security markets.

A Continuous Security Market