CFA Practice Question

CFA Practice Question

Which of the following is most likely incorrect?
A. Secondary capital markets are a source of liquidity.
B. Call markets are typically larger than continuous markets.
C. In the OTC market, both listed and unlisted stocks are traded.
Explanation: In call markets trades happen only at specific times and at negotiated prices, so call markets are usually small.

User Contributed Comments 2

User Comment
harrybay How are secondary capital markets a source of liquidity?
rojaslav Investopedia: secondary liquidity refers to investors who sell their shares on the secondary market to buyers on a public stock exchange. Generally used to cash out their stake in a company.
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