When Evaluating the Secondary Market Based Upon How the Securities

question 14

Multiple Choice

When evaluating the secondary market based upon how the securities are traded,we can divide the market into two segments:

• A) a bull market and a bear market.
• B) a stock market and a bond market.
• C) a primary market and a secondary market.
• D) a broker market and a dealer market.

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Definitions:

Forgery

The act of fraudulently making or altering a document with the intention to deceive someone.

Ordinary Holder

In financial terms, an average investor or party holding financial instruments, securities, or other assets under normal circumstances.

HDC

Refers to a Holder in Due Course, a legal term describing a party that has acquired a negotiable instrument under certain conditions, protecting them against certain defenses.

Presentment Warranties

Guarantees made by the presenter of a negotiable instrument that certain facts are true at the time of negotiation.