The Basic Distinction Between a Primary and a Secondary Market

question 31

Multiple Choice

The basic distinction between a primary and a secondary market is that

• A) proceeds from sales in the primary market go to the current owner of a security; proceeds in secondary market go to the original owner.
• B) primary markets involve direct dealings within regional exchanges.
• C) only new securities are sold in the primary market; only outstanding securities are bought and sold in the secondary market.
• D) primary markets deal exclusively in bonds; secondary markets deal primarily in common stock.
• E) primary markets deal exclusively in common stocks; secondary markets deal primarily in bonds.

Identify characteristics of change leaders and their influence on organizational change.

Understand the concept of planned and unplanned change.

Recognize the role and impact of internal and external change agents.

Understand strategies for managing resistance to change.

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Definitions:

Operating Cost

The expenses associated with the day-to-day running of a business, excluding the cost of goods sold.

Useful Life

The estimated duration a long-term asset is expected to be economically utilizable before it needs to be replaced or significantly overhauled.

Net Operating Income

The profit generated from a company's core business operations, excluding income and expenses from non-operational activities.

Traceable Fixed Expense

Fixed costs that can be directly associated with a specific cost object, such as a product, department, or project.