Why Is a Stock Exchange Like NASDAQ Considered a 'Secondary

question 21

Multiple Choice

Why is a stock exchange like NASDAQ considered a 'secondary market'?

• A)Shares sold on it are exchanged between investors without any involvement of the issuing corporation.
• B)NASDAQ is called a secondary market because NYSE is considered a primary market.
• C)The exchange has rules that attempt to ensure that bid and ask prices do not get too far apart.
• D)It trades the second largest volume of shares in the world.

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Definitions:

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Mowrer's Two-process Theory

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