Which ONE of the Following Statements Is True About Secondary

question 69

Multiple Choice

Which ONE of the following statements is true about secondary markets?

• A) The ordinary shares of large companies often rely on word-of-count to find interested buyers.
• B) Brokers bring buyers and sellers together to earn a fee.
• C) The presence of active brokers increases market inefficiency.
• D) A specialist is a specific location on the floor of a securities exchange at which auctions for a particular security take place.

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Definitions:

Investments By Stockholders

Money or other assets that shareholders put into a company to acquire ownership interests.

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities.

Treasury Stock

Shares that were once outstanding in the stock market but were bought back by the issuing company.

Paid-In Capital

Paid-in capital refers to the funds a company has garnered from its shareholders through the sale of stock shares.