Question

Which of the following is/are true for the secondary market?
(A) Facilitates liquidity and marketability of securities
(B) Provides valuation of securities
(C) Enables price discovery
(D) Creates a wealth effect
Choose the correct answer from the options given below :

• A. (A), (B), and (D) only.
• B. (A), (B), and (C) only.
• C. (A), (B), (C), and (D).
• D. (B), (C), and (D) only.

Hint:

Secondary markets play a critical role in ensuring liquidity and aiding economic growth by reflecting market dynamics.

Answer 1

The Correct Option is C

The secondary market facilitates liquidity, price discovery, and security valuation. It also fosters wealth creation by enabling investors to trade and realize investment value.