Why Is a Stock Exchange Like NASDAQ Considered a Secondary

question 51

Multiple Choice

Why is a stock exchange like NASDAQ considered a secondary market?

• A)It trades the second-largest volume of shares in the world.
• B)Shares sold on it are exchanged between investors without any involvement of the issuing corporation.
• C)The exchange has rules that attempt to ensure that bid and ask prices do not get too far apart.
• D)NASDAQ is called a secondary market because NYSE is considered a primary market.
• E)Smaller companies are listed on the NASDAQ.

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Definitions:

Homeostasis

The inclination of a biological system to preserve equilibrium by adapting to conditions ideal for survival.

Drive

An innate, biologically determined urge to attain a goal or satisfy a need.

Incentive

A thing that motivates or encourages someone to do something; a reward or reason for performing an action.

Need

Need refers to a psychological or physiological requirement essential to the well-being of an organism, ranging from basic survival necessities like food and shelter to more complex psychosocial demands such as esteem and belonging.