Primary and Secondary Market

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Primary and Secondary Market: Overview

This topic covers concepts such as, Primary and Secondary Market etc.

Important Questions on Primary and Secondary Market

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Which of the following best describes the function of the secondary market?

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Which market is primarily concerned with the issuance of new securities?

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Which of the following markets is also known as the stock market?

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In which type of market are existing securities traded among investors?

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Which of the following is NOT a characteristic of a primary market?

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Rohit has 500 shares of Ruchi Soya Ltd. Ruchi Soya further issued 1,00,000 equity shares and offered Rohit to buy 1 more equity share for every 5 shares held by him. Identify the method of floatation.

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The market where existing securities are bought and sold is known as ___________.

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Identify the method of floatation in Primary Market wherein a company sells securities enbloc at an agreed price to a broker.