What Is a Secondary Market

question 236

Multiple Choice

What is a secondary market?

• A)a market where factory seconds and damaged merchandise are sold
• B)a market where newly issued bonds are sold to initial buyers by the borrowing firm
• C)a market where a newly issued stocks are sold to initial buyers by the borrowing firm
• D)a market where you can sell any stocks you own as a private investor

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Definitions:

Labor Demand Schedule

A tabulation or curve showing the quantity of labor that firms wish to hire at each possible wage rate, displaying the negative relationship between wages and quantity of labor demanded.

Wage Rate

The amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed per hour or year.

Purely Competitive

A market structure characterized by a large number of small firms, homogenous products, and no single firm having control over the market price.

Wage Rate

The amount of money paid to a worker per unit of time, often expressed as an hourly rate or annual salary.