Which of the Following Statements Is NOT True About Secondary

question 68

Multiple Choice

Which of the following statements is NOT true about secondary markets?

• A) In terms of total stock value of the firms listed, the NASDAQ is the largest in the world and the NYSE is the second largest.
• B) NASDAQ is the second-largest stock market in the United States.
• C) Firms listed on the NYSE tend to belarger in size and their shares trade more frequently than those traded on NASDAQ.
• D) In the United States, most secondary market transactions are done on one of the many stock exchanges.

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Definitions:

Effective Rate

The annual interest rate that accounts for compounding within the year.

Compounded Annually

The process where interest earned is added to the principal sum once a year, and future interest is earned on the new total.

Compounded Nominal Annual Rate

The rate of interest for one year, without taking inflation into account, which is compounded at specified intervals within that year.

Effective Rate

The actual interest rate on an investment or loan, taking into account the compounding of interest over time.