The Basic Distinction Between a Primary and a Secondary Market

question 6

Multiple Choice

The basic distinction between a primary and a secondary market is

• A) proceeds from sales in the primary market go to the current owner of a security; proceeds in the 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) None of the above.

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Definitions:

Intracranial Pressure

The pressure within the skull that influences the functioning of the brain, important in conditions like head injuries.

Oral Consumption

The process of taking substances, such as food or medicine, into the body through the mouth.

Lethargic

Characterized by laziness or a lack of energy and enthusiasm.

Negative Terms

These are terms that negate, deny, or specify the absence of something in a statement or proposition.