Secondary Markets Online Test

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Description: This quiz covers the secondary markets, where previously issued securities are traded after their initial issuance.
Number of Questions: 15
Created by: Aliensbrain Bot
Tags: financial markets secondary markets securities trading

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What is the primary purpose of a secondary market?

Which of the following is an example of a secondary market?

What is the main difference between a primary market and a secondary market?

Primary markets involve the initial issuance of securities, while secondary markets involve subsequent trading of those securities.
Primary markets are regulated by the government, while secondary markets are not.
Primary markets are typically more volatile than secondary markets.
Primary markets are only for large corporations, while secondary markets are for all types of investors.

What is the role of market makers in a secondary market?

Which of the following is a benefit of having a secondary market?

What is the term used to describe the process of buying a security in a secondary market?

What is the term used to describe the process of selling a security in a secondary market?

What is the difference between a stock exchange and an over-the-counter (OTC) market?

Stock exchanges are physical locations where securities are traded, while OTC markets are electronic networks.
Stock exchanges are regulated by the government, while OTC markets are not.
Stock exchanges are only for large corporations, while OTC markets are for all types of investors.
None of the above

What is the purpose of a clearinghouse in a secondary market?

What is the term used to describe the difference between the bid price and the ask price of a security?

What is the term used to describe the process of buying a security at the ask price and selling it at the bid price?

What is the term used to describe the process of buying a security with the intention of holding it for a long period of time?

What is the term used to describe the process of buying and selling securities frequently in order to profit from short-term price movements?

What is the term used to describe the process of buying a security with the intention of selling it at a higher price in the future?

What is the term used to describe the process of buying a security with the intention of offsetting the risk of another investment?

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