The Purpose of Secondary Trading Is to

question 43

Multiple Choice

The purpose of secondary trading is to

• A) provide liquidity and competition between investments.
• B) provide a market to issue securities not handled in primary trading.
• C) provide jobs for brokers and dealers.
• D) provide lower commissions than on the organized exchanges.

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Definitions:

Credit Counseling

A service that assists individuals in managing their debt through financial education, budgeting, and the use of debt management plans.

Bankruptcy Petition

A legal document filed by an individual or corporate entity declaring the inability to repay outstanding debts.

Nonprofit

Organizations that operate for collective, public, or social benefit, without the goal of making profits for owners or investors.

Bankruptcy Estate

The assets and properties of an individual or entity undergoing bankruptcy, encompassing both tangible and intangible possessions.