Second tier security market; operating regulation, primary and secondary market, first tier and second tier - SS3 Commerce Past Questions and Answers - page 1
What types of securities are typically traded in the second-tier security market?
Securities not listed on major exchanges
Government-issued securities
Which market provides higher liquidity for securities?
First-tier market
Second-tier market
What is the primary purpose of the primary market?
Initial sale of securities by companies
Trading of previously issued securities
Which market is subject to stricter regulations?
First-tier market
Second-tier market
Where are blue-chip stocks typically listed?
First-tier market
Second-tier market
Can you provide an example of a second-tier security market?
One example of a second-tier security market is the Alternative Investment Market (AIM) in the United Kingdom, where smaller and growing companies can raise capital and have their securities traded.
How does the liquidity of securities in the second-tier market differ from the first-tier market?
Securities in the first-tier market, such as those listed on major exchanges, generally have higher liquidity due to a larger number of buyers and sellers. In contrast, the second-tier market may have lower liquidity as there may be fewer participants trading those securities.