Secondary Markets

question 11

Multiple Choice

Secondary markets

• A) function as a place for smaller, less well-known firms to issue securities.
• B) are an important vehicle for established firms to raise additional money for expansion.
• C) are a means by which funds are cycled from savers to borrowers.
• D) are concerned with the trading of previously issued securities between investors.

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Definitions:

Increasing

Describes a situation where there is a growth or rise in a particular variable, measure, or quantity over time.

Constant

A fixed value that does not change.

Slope

A measure of the steepness or incline of a line, represented as the ratio of the vertical change to the horizontal change between two points on the line.

Vertical Axis

The vertical number line of a graph along which values of the y-variable are measured; also referred to as the y-axis.