CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Secondary markets are ______.

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"
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