Trading, Accounts & Prohibited ActsQuestion 209 of 398
An investor buys 100 shares of a public company from another investor through an exchange. This transaction takes place in the:
a.Primary market
b.Third market only
c.Secondary market
d.Fourth market only
Explanation
Trading of already-issued securities among investors occurs in the secondary market, where the issuer receives no proceeds. The primary market involves the original sale of new securities by the issuer to raise capital.
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