Which of the following are functions of the secondary market?
I. Provide liquidity for current stockholders.
II. Equate the demand and supply of securities.
III. Provide a market for the dale of new stock by companies that are already public.
IV. Provide continuous pricing of securities.

Question

Quizplus · Accepted Answer

The secondary market provides liquidity for current stockholders by allowing them to sell their shares to other investors, while the demand and supply of securities are equalized through the buying and selling activities of investors, and this market also provides continuous pricing information for securities. Additionally, companies that are already public can use the secondary market to sell new stock. Therefore, all of the given options are functions of the secondary market.

Which of the Following Are Functions of the Secondary Market