Which of the following transactions takes place in the secondary market?
A.
Issue of new debt and equity securities
B.
Sale of mutual funds
C.
Issue of federal Treasury bills
D.
Resale of previously issued securities
The Answer Is:
D
This question includes an explanation.
Explanation:
The secondary market involves trading previously issued securities between investors, enabling liquidity for those who initially purchased the securities. The feedback from the document states:
"The secondary market involves the resale of previously issued securities between investors. It enables investors who originally bought the investment products to sell them and obtain cash."
[Reference: Chapter 2 – Overview of the Canadian Financial MarketplaceLearning Domain: An Introduction to the Mutual Funds Marketplace, , , ]
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