Ask Question
BusinessBusiness
15 December, 11:33

What is the key difference between the primary and secondary securities markets? Why are the trades that occur on the secondary market important to a firm's management?

+3
Answers (1)
  1. 15 December, 13:06
    0
    Explanation:The difference between the primary market and the secondary market is that in the primary market the owners of the company are the sellers and the investors are buyers. Investors can only buy stock in the primary market. If they want to sell the stock they have bought, it can be done only in the secondary market. The stock of any company is transacted in the primary market only once.

    Lower transaction costs due to the high volume of transactions. Demand and supply economics in the market assist in price discovery. Secondary markets face heavy regulations from the government as they are a vital source of capital formation and liquidity for the companies and the investors.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What is the key difference between the primary and secondary securities markets? Why are the trades that occur on the secondary market ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The U. S. government pays an economist at the U. S. Department of Commerce $100,000 in salary in 2013. The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct? a.
Answers (1)
On January 1, 2018, Allgood Company purchased equipment and signed a six-year mortgagenote for $186,000 at 15%. The note will be paid in equal annual installments of $49,148, beginningJanuary 1, 2019.
Answers (1)
The rate of tuberculosis increased dramatically during the 1980s. as a result, tuberculosis during those years should be referred to as?
Answers (1)
At July 31, Wildhorse Co. has this bank information: cash balance per bank $7,250, outstanding checks $670, deposits in transit $1,270, and a bank service charge $40. Determine the adjusted cash balance per bank at July 31.
Answers (1)
Mariah company has inventory at the end of the year with a historical cost of $95,000. mariah company uses the perpetual inventory system. under the lcm rule, the current replacement cost is $75,600. under u. s.
Answers (1)
New Questions in Business
Allowing only the treasurer to sign checks is an example of Group of answer choices establishment of responsibility. other controls. separation of duties. documentation procedures.
Answers (1)
Warren Corporation is interested in a three-year, 11% annual coupon bond. A broker quotes a price of $930.35. What is the yield to Maturity?
Answers (1)
Ian, a single taxpayer, received $15,000 of Social Security retirement this year. He also received $16,000 of interest income. How much of Ian's Social Security benefits must be included in his gross income this year?
Answers (2)
Which of the following statements describes a recurring theme about today's ecological environment? a) Most people agree that there is strong evidence that the temperature of the planet is going down.
Answers (1)
Richard deposited $5,432 into a savings account that earns 3.5% compounded daily for 45 days. Find the compounded amount after 45 days
Answers (1)
Home » Business » What is the key difference between the primary and secondary securities markets? Why are the trades that occur on the secondary market important to a firm's management?
Sign Up Forgot Password?