Secondary And Primary Markets - SS2 Economics Past Questions & Answers - page 1

1

Which market is where newly issued securities are sold for the first time?

A

Primary market

B

Secondary market

C

Tertiary market

D

Quaternary market

CORRECT OPTION: a
2

Where can investors trade stocks and other securities?

A

Primary market

B

Secondary market

 

C

Tertiary market

D

Quaternary market

CORRECT OPTION: b
3

Which market provides liquidity to investors who want to buy or sell securities?

A

Primary market

B

Secondary market

C

Tertiary market

D

Quaternary market

CORRECT OPTION: b
4

In which market are securities sold directly to investors by the issuer?

A

Primary market

B

Secondary market

C

Tertiary market

 

D

Quaternary market

CORRECT OPTION: a
5

What is the primary market?

The primary market is a market where newly issued securities are sold for the first time, typically through an initial public offering (IPO).

6

What is the purpose of the secondary market?

The secondary market provides liquidity to investors who want to buy or sell securities, and it helps to set prices based on market forces.

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