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Commerce · Q934

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 934

Q934

Which one of the following best supports the theory that the stock exchange is a secondary market? In a stock exchange

A.
securities are bought and sold by way of transfer
B.
an existing holder of securities can dispose of the holdings to another investor who intends to buy them
Answer
C.
no new investment is created
D.
securities are dealt in for dual purposes investment and speculation

Answer: Option B

Solution

Answer: Option B
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