Which of the Following Does Not Apply to Secondary Markets

question 59

Multiple Choice

Which of the following does not apply to secondary markets?

• A) Transactions are important to the efficient allocation of resources in our economy.
• B) New resources are provided when shares of stock are sold by the corporation to the initial owners.
• C) Transactions help to establish market prices for additional shares that may be issued in the future.
• D) Many investors might be unwilling to provide resources to corporations if there is no available mechanism for the future sale of their stocks and bonds to others.

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