Question : Which of the following statement is correct? Statement 1: Secondary markets issue securities for the first time. Statement 2: Primary market has no specified place.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Statement 1 is false and statement 2 is true.
Solution : Primary market issued the security for the first time. In the secondary market there is no issuing of security rather trading of the already issued securities. Primary market has no specified place. Secondary market as a special and fixed place known as stock exchange.
Hence, option D is correct.
Question : Which of the following statement is correct? Statement 1:Primary Market promotes capital formation directly. Statement 2: Only buying of securities takes place in the Primary Market.
Question : Which of the following statement is correct? Statement 1: Capital market refers to that market where transaction in long term securities are made. Statement 2: Money market refers to that market where transaction in short term securities are made.
Question : Which of the following statement is correct? Statement 1: It is the feature of secondary market to create liquidity in securities. Statement 2: liquidity means immediate conversion of securities into credit.
Question : Statement 1: Secondary market involves the trading of existing securities.
Statement 2: Secondary market involves the issuance of new securities to the public.
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