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Multiple Choice Question______ markets handle the trading of securities between investors rather than the company that issued the stock or bonds.Multiple choice question.SecondaryPrimarySpotPar

Question

Multiple Choice Question______ markets handle the trading of securities between investors rather than the company that issued the stock or bonds.Multiple choice question.SecondaryPrimarySpotPar

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Solution

The correct answer is "Secondary".

Secondary markets handle the trading of securities between investors rather than the company that issued the stock or bonds. This is where investors buy and sell securities they already own. It includes the New York Stock Exchange and other major exchanges, as well as the over-the-counter market.

In contrast, primary markets are where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time, such as with an initial public offering (IPO).

Spot markets are where financial instruments, such as commodities, currencies and securities, are traded for immediate delivery.

Par is a financial term that refers to the face value of a bond or stock.

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