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1 FINANCE MCQS

Exchange markets and over-the-counter (OTC) markets are two types of ____________?

  • Floating market
  • Risky market
  • Secondary market
  • Primary market
Correct Answer: C. Secondary market

Detailed Explanation

A secondary market is where existing securities are bought and sold after being issued in the primary market. It includes exchange markets (such as stock exchanges where trades are centralized) and over-the-counter (OTC) markets, which allow decentralized trading directly between parties. These markets provide liquidity to investors and help determine the market price of securities.

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