Question

Stock exchange is known as __________ market for securities. (a) Primary market (b) Secondary market (c) Capital market (d) None of the above

Answer 1

Answer:

Explanation:

Option b is your answer

Answer 2

The right response to the provided question is option b: Secondary Market.

• The secondary market is where investors exchange their financial assets.
• The corporation first develops bonds and stocks, which it then offers to investors in the form of public offerings for the first time.
• When this offering achieves a satisfactory financial worth, those investors trade in the secondary market.
• Capital market is a common term where financial securities are based on investments, bonds and shares in terms of finance.
• However, when this capital is offered for the first time, it is referred to as an initial offering, which is part of the primary market, and when these stocks are traded or exchanged among investors and the general public, it is referred to as a secondary market.
• As a result, option b is accurate in this situation.