Question : Which market allows the trading of existing securities?
Option 1: Primary market
Option 2: Secondary market
Option 3: Money market
Option 4: Capital market
Correct Answer: Secondary market
Solution : The correct answer is (b) Secondary market
The secondary market is the market that allows the trading of existing securities. It is the market where already issued securities, such as stocks, bonds, and other financial instruments, are bought and sold among investors. In the secondary market, investors trade securities with each other, and the transactions occur between buyers and sellers. The secondary market provides liquidity to investors by allowing them to buy and sell securities after the initial issuance in the primary market.
Question : Which market provides funds for long-term capital requirements of a company?
Option 1: Money market
Option 2: Primary market
Option 3: Secondary market
Option 4: Commodity market
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