A Difference Between the Primary Market and the Secondary Market

question 66

Multiple Choice

A difference between the primary market and the secondary market is:

• A)liquidity.
• B)that primary markets allow corporations, government units, and others to raise needed funds for the expansion of their capital base.
• C)that price competition in the secondary markets between different risk-return classes enables the primary market to price new issues at higher prices to reflect existing risk-return relationships.
• D)that the secondary market is much more competitive than the primary market.

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Definitions:

Jean Baudrillard

A French philosopher and sociologist known for his critical theories about media, culture, and technological communication, as well as for his concept of hyperreality.

Complimentary

Serving to complete something else or supply a deficiency; often used to describe things that enhance or improve when brought together.

Inexpensive

Referring to something that does not cost a lot of money, offering affordability and value.

Christian Fundamentalists

Individuals who strictly adhere to the interpreted fundamentals of the Christian faith, often with a literal interpretation of the Bible.