Why Is a Stock Exchange Like NASDAQ Considered a 'Secondary

question 21

Multiple Choice

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

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

---

Definitions:

Modified

Changed in form or character; not originally in its natural or intended state, often through human intervention.

Transcription

The act of transcribing a portion of DNA into RNA.

Translation

The process in molecular biology where ribosomes synthesize proteins using mRNA as a template.

Translation

In biology, translation is the process by which the genetic code carried by mRNA is decoded to produce the specific sequence of amino acids in a polypeptide chain.