All of the Following Are Advantages of Secondary Markets EXCEPT

question 50

Multiple Choice

All of the following are advantages of secondary markets EXCEPT that they

• A) provide liquidity to individuals holding the securities.
• B) support the primary market by reducing the required rate of return due to the lower liquidity risk for securities.
• C) provide price discovery for corporations selling seasoned securities.
• D) impact market efficiency and price volatility.
• E) All of these are correct.

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Definitions:

Push Model

A push model is a supply chain strategy where products are produced in anticipation of customer demand and pushed through the distribution channels to end consumers.

Make-To-Order

The strategy of producing customized products and services.

EDI

Electronic Data Interchange, a standardized method for transferring data between different computer systems or networks, especially used in business transactions.

XML

Extensible Markup Language, a flexible way to create common information formats and share both the format and the data on the World Wide Web, intranets, and elsewhere.