Question

Primary and secondary markets:

• A. Control each other
• B. Complement each other
• C. Function independently
• D. Compete with each other

Answer 1

The correct option is B

Complement each other

Primary and secondary markets complement each other. Primary market deals with the issue of new securities. On the other hand, secondary market deals in the purchase and sale of the existing securities. That is, once the securities are issued in primary market, they are then traded in the secondary market.