The Primary Distinction Between Securities Sold in the Primary and Secondary

question 66

Multiple Choice

The primary distinction between securities sold in the primary and secondary markets is the:

• A) riskiness of the securities.
• B) price of the securities.
• C) previous issuance of the securities.
• D)profitability of the issuing corporation.

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Definitions:

Total Liabilities

The sum of all financial obligations or debts that a company owes to outside parties, listed on the balance sheet.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing ownership interest.

Assets

Assets are resources owned by a company or individual that have economic value and can provide future benefits, like cash, inventory, and equipment.

Increase

An upward movement or growth in value, amount, or any measurable attribute.