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:

Dyspareunia

Painful intercourse, either due to physical or psychological factors.

Amenorrhea

The absence of menstruation in a woman of reproductive age, which can be primary (never having menstruated) or secondary (cessation of menstruation for various reasons).

Hysterectomy

a surgical operation to remove all or part of the uterus.

Hysterotomy

A surgical procedure to access the uterus, often performed during a cesarean section.