Which of the Following Statements Is Not True of Secondary

question 7

Multiple Choice

Which of the following statements is not true of secondary markets?

• A) After securities are sold to the public, they are traded in the secondary market between investors.
• B) The secondary market prices are continually changing as investors buy and sell securities.
• C) The sale of securities is made in the secondary market by way of a new issue.
• D) In the secondary market, financial managers are given feedback about their firm's performance.

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Definitions:

Banking System

A network of institutions that provide financial services, including managing deposits, loans, and currency exchange.

Exchange Rate

The price of one country's currency expressed in another country's currency, allowing for the exchange of currencies in global markets.

Own Currency

The currency issued and used by a country, typically managed by its central bank or monetary authority.

Home Country

The country where a company is headquartered or where an individual is a citizen.