In the secondary market,stock prices are
A)determined by supply and demand.
B)often undervalued.
C)easy to predict.
D)less expensive than on the primary market.

Question

Quizplus · Accepted Answer

Stock prices in the secondary market are determined by the forces of supply and demand, as buyers and sellers negotiate the price at which they are willing to trade shares. This can result in fluctuations in price that reflect changes in investor sentiment or other market dynamics, making it difficult to predict stock prices with great accuracy. While some stocks may be undervalued or overvalued in the secondary market, this is not a universal trend, and prices may reflect a range of factors that are specific to each company or industry. Additionally, stock prices in the secondary market may be more or less expensive than on the primary market, depending on a variety of factors such as the degree of liquidity, transaction costs, and the level of competition among buyers and sellers.

In the Secondary Market,stock Prices Are