For investors, the function of secondary markets is to provide marketability for the securities they own at a fair price.

Question

Quizplus · Accepted Answer

Secondary markets allow investors to sell their securities to other investors, providing liquidity and marketability for their investments. The market price is determined by supply and demand and reflects the perceived value of the security at that time. Therefore, investors can receive a fair price for their securities when selling on secondary markets.

For Investors, the Function of Secondary Markets Is to Provide