Which market creates liquidity:-
a) primary
c) secondary
c) unorganised
d) organised
Answer, only if you are sure
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In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price.
therefore,organised is your answer
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The secondary market creates liquidity.
- Secondary markets are those markets investors buy and sell a security that they already possess. The stock market is the basic example of a secondary market where the shares of various companies are bought and sold.
- The stocks are sold on the primary market when they are first issued. Investor can sell their stocks in the stock market in order to gain cash according to their requirement.
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