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Once a company issues its IPO, the company's stock starts trading in the aftermarket, also called the secondary market. After the IPO, investors can buy
Once a company issues its IPO, the company's stock starts trading in the aftermarket, also called the secondary market. After the IPO, investors can buy and sell a company's stock in the secondary markets. A company must list its stock on an exchange and qualify so that its stock can be traded among investors on the secondary markets. The New York Stock Exchange (NYSE), American Stock Exchange (AMEX), and National Association of Securities Dealers Automated Quotations (NASDAQ) are some of the stock exchanges that list hundreds of stocks. Listing a stock has several benefits. Consider the following statement: Listed companies get more publicity and generate more awareness. Is the preceding statement true or false? True False A dealer who holds a certain inventory of the shares of a particular company and then offers to buy or sell that company's stock is said to be. The SEC and the National Association of Securities Dealers (NASD) regulate trading activity in exchanges to prevent unlawful activities. Consider the following statement: The SEC gives institutional investors the right to artificially inflate the market price of a particular stock and the SEC cannot reverse transactions. Is this statement accurate? Yes No
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