Question : Assertion: Secondary market facilitates the trading of existing securities.
Reason: Secondary market involves the issuance of new securities to the public.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. The secondary market indeed facilitates the trading of existing securities, allowing investors to buy and sell previously issued securities.
The reason is false. The secondary market does not involve the issuance of new securities to the public. It is focused on the trading of already issued securities among investors and does not pertain to the creation or issuance of new securities.
Related Questions
Trending Articles/News
