The Purpose of Secondary Trading Is to

question 43

Multiple Choice

The purpose of secondary trading is to

• A) provide liquidity and competition between investments.
• B) provide a market to issue securities not handled in primary trading.
• C) provide jobs for brokers and dealers.
• D) provide lower commissions than on the organized exchanges.

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Definitions:

Elected Officials

Elected officials are individuals chosen through the electoral process to hold public office in government bodies at various levels, responsible for legislating, making decisions, and representing the interests of the citizenry.

Natural Monopolies

Industries where a single firm can supply a product or service to an entire market at a lower cost than what would be possible if there were multiple firms.

Public Interest

The welfare or well-being of the general public, often considered in decision-making processes to ensure policies and actions benefit the majority.

Government

The system or group of people governing an organized community, often a state or nation.