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: Listing a stock in an exchange generally provides more liquidity. Is the preceding statement true or false? False True 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 companies the liberty to solicit votes through proxy statements and focuses on the end result instead of the way companies use these proxy statements. Is this statement accurate? Yes No