Question

Why is a stock exchange like NASDAQ considered a secondary​ market? A. It trades the second largest volume of shares in the world. B. NASDAQ is called a secondary market because NYSE is considered a primary market. C. The exchange has rules that attempt to ensure that bid and ask prices do not get too far apart. D. Shares sold on it are exchanged between investors without any involvement of the issuing corporation.

Answer 1

D. Shares sold on it are exchanged between investors without any involvement of the issuing corporation.

Step-by-step explanation:

Secondary markets are markets in which stocks , bonds, options, futures and shares are sold or bought by investors without any direct involvement with investors. The brokers serve as a link between the investors and the companies. Normally the transactions that occur in the secondary markets is between investors themselves who are linked by the broke. Example of secondary market is the New York stock exchange, NASDAQ, e.t.c.