Capital MarketsQuestion 300 of 398
An investor buys 100 shares of an already-public company from another investor on an exchange. This transaction takes place in which market?
a.The primary market
b.The secondary market
c.The new-issue market
d.The underwriting market
Explanation
Trades between investors of securities that are already outstanding occur in the secondary market. The issuing company is not a party to the trade and receives none of the money exchanged.
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