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:

Partnership

A sanctioned business setup where a group of individuals co-manage the operation and share the resulting income.

Legal Entity

A legally recognized organization or individual that has rights, responsibilities, and can enter into contracts.

Owners

Individuals or entities that possess legal rights and claims to the assets of a business.

Monthly Salary Allowance

A fixed amount of money or compensations given on a monthly basis, often excluding any bonuses or additional pay.