_______ helps existing investors to dis-invest and fresh investors to enter the market.

Secondary market

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Primary market

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Capital market

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Money market

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Solution

The correct option is A Secondary market
Secondary market helps existing investors to dis-invest and fresh investors to enter the market. The secondary market is also known as the stock market or stock exchange, which is the market for the purchase and sale of existing securities. In secondary market, securities are not directly issued by the company to investors. The securities are sold by existing investors to other investors.

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Similar questions

In the secondary market, sale of securities takes place between investors only, then how does this market contribute to capital formation?

Q17. Consider the following statements about Commodity market:

1. It is the market where a wide range of products are traded

2. This would help investors hedge their commodity risk.

Which of the following statements are correct?

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