- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 7. Secondary Security Market and Contract Market Structures
CFA Practice Question
Secondary markets are ______.
II. markets in which securities are resold after they are originally issued
III. only OTC markets
I. either auction or dealers markets
II. markets in which securities are resold after they are originally issued
III. only OTC markets
Correct Answer: I and II
User Contributed Comments 7
| User | Comment |
|---|---|
| quincy | I thought it should be II and III? |
| ange | No III is not correct as exchange markets can also be secodary markets (you can buy stocks from NYSE). |
| gene80 | duh.. Ange's not answering quicy's question at all. Quincy, III isn't exactly correct to state tt secondary market is being "ONLY OTC markets". It's too absolute a statement, a trick question. Secondary market are characterized with OTCs along with other stock exchanges, 3rd/fourth markets.. etc. |
| Kofo | i also thought II and III but gene80 has answered the question |
| rethan | What is a dealer's market? |
| soarer1 | From investopedia: Dealer Market: A market where dealers are assigned for specific securities. The dealers create liquid markets by purchasing and selling against personal inventory. |
| khalifa92 | iii would've been correct if there was no "only" |