Question
How is a liquid secondary market of value to the issuer of shares in the primary market? a. If shares are sold at a profit
How is a liquid secondary market of value to the issuer of shares in the primary market?
a. If shares are sold at a profit in the secondary market, the issuer of the shares receives the difference between the buying price and the selling price.
b. Investors are more likely to buy shares in the secondary market if they can easily sell their shares in a liquid primary market.
c. The secondary market estabilishes the fair value of shares through the forces of supply and demand.
d. Both B and C.
May I ask which one is the correct answer and where can I find more information about this question to understand more about a liquid secondary market or liquid primary market please. In addition, we selected D and it is incorrect, so I think the correct answer is A for this question.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started