Which of the following statements is true about secondary markets in the United States?
A) In terms of total stock value of the firms listed, the NASDAQ is the largest in the world and the NYSE is the second largest.
B) NASDAQ is an OTC (over-the-counter) market.
C) Firms listed on the NASDAQ tend to be, on average, larger in size, and their shares trade more frequently than those traded on NYSE.
D) In the United States, most secondary market transactions are done over the counter.

Question

Quizplus · Accepted Answer

NASDAQ is an OTC (over-the-counter) market. The correct statement about the total stock value of the firms listed and the size and frequency of shares trading on NASDAQ and NYSE are incorrect. Most secondary market transactions are not done over the counter but through organized exchanges such as NASDAQ and NYSE.

Which of the Following Statements Is True About Secondary Markets