Question

How many times a security can be sold in a Secondary Market?

• A. Three times
• B. Only one time
• C. Multiple times
• D. Two times

Hint:

Remember: Secondary market = Unlimited trading.

Answer 1

The Correct Option is C

Concept: The secondary market is where already issued securities are bought and sold among investors.
Step 1: Understanding secondary market.
Once securities are issued in the primary market, they can be traded freely in the secondary market.
Step 2: Nature of transactions.
Investors can buy and sell the same security repeatedly without any limit.
Step 3: Evaluate options.

• Three times $\rightarrow$ Incorrect
• Only one time $\rightarrow$ Incorrect
• Multiple times $\rightarrow$ Correct
• Two times $\rightarrow$ Incorrect

Step 4: Conclusion.
Thus, a security can be sold multiple times in the secondary market.