A Difference Between the Primary Market and the Secondary Market

question 26

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)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)The secondary market is much more competitive than the primary market.

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Definitions:

Authoritative

A leadership style or manner that combines high responsiveness with high demands, promoting independence while maintaining control.

Wording

The choice and arrangement of words in a sentence, which can impact its meaning and tone.

On-Site Day-Care

A childcare facility located at or near a workplace, designed to provide convenience to employees with young children.

Fringe Benefit

Additional compensations given to employees beyond their base salary, such as health insurance, retirement plans, and paid time off.