The Difference Between a Primary Market and a Secondary Market

question 13

Multiple Choice

The difference between a primary market and a secondary market is

• A)primary market is the stock market and secondary market is the market for second hand sale of securities
• B)a primary market helps in long-term credit and secondary market offers short-term credit
• C)a primary market helps in the issue of new securities those which are offered for the first time and the secondary market is for second hand sale of securities listed on the stock exchange
• D)a primary market is the unorganized sector and the secondary market is the organized sector for sale and purchase of securities.

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Definitions:

Inventory

The total amount of goods and materials held in stock by a business, shop, or warehouse.

Administrative Expenses

Ongoing expenses associated with the general operation of a business, such as office supplies, salaries of non-sales personnel, and utilities.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, usually a year or a quarter, highlighting the net profit or loss.

Shareholder Stake

The interest or share that an individual or entity has in the ownership of a company, often expressed as a percentage of the company's stock.