alleryStart learning →What is traded in the secondary market?
ANewly issued securities sold by the issuer
BAlready issued securities traded by investors
CUnissued securities held back by the underwriter
DCancelled securities withdrawn by the regulator
Answer & Solution
Correct answer: B. Already issued securities traded by investors
1. The secondary market is where old, already issued securities are bought and sold among investors.
2. The issuers generally are not involved in these transactions.
3. The vast majority of securities transactions take place there rather than in the primary market.
4. It includes broker markets, dealer markets, the over-the-counter market and the commodities exchanges.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.6 Securities Markets_
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