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In Business / College | 2025-07-04

Which of the following is not true regarding primary and secondary markets?
A. Primary markets sell new issues of securities.
B. Primary and secondary markets both sell assets directly from the company.
C. Secondary markets sell old issues of securities.
D. Primary markets and secondary markets are different markets.

Asked by sincerelyblake

Answer (2)

The incorrect statement is option B, which falsely implies that both primary and secondary markets sell assets directly from the company. In fact, the primary market sells new issues of securities, while the secondary market involves trading existing securities among investors. Recognizing these distinctions is important for understanding capital markets.
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Answered by Anonymous | 2025-07-04

The false statement regarding primary and secondary markets is option B, as it inaccurately implies that both markets sell assets directly. The primary market involves selling new securities, while the secondary market involves trading existing securities. Understanding these distinctions is essential for grasping capital market functions. ;

Answered by GinnyAnswer | 2025-07-04

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