Why Is a Stock Exchange Like NASDAQ Considered a Secondary

question 13

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.

---

Definitions:

Higher Taxes

An increase in the mandatory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

New Product

An item that has been recently introduced to the market, offering new or improved features, functionalities, or benefits.

Rent Control

Government policies or laws that limit the amount landlords can charge for leasing residential properties in order to keep housing affordable.

High Demand

A market condition where the desire and need for a product or service significantly exceed the available supply.