Once Firms Issue Financial Instruments in Primary Markets, These Same

question 19

Multiple Choice

Once firms issue financial instruments in primary markets, these same stocks and bonds are then traded in which of these?

• A) initial public offerings
• B) direct transfers
• C) secondary markets
• D) over-the-counter stocks

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Call

In finance, a call refers to an option contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other instruments at a specified price within a specific time period.

Stock Price

The cost of purchasing a share of a company, as traded on a stock exchange, reflecting the market's view of its collective prospects.

Value

The importance, worth, or usefulness of something, often measured in terms of money or utility.