You want to purchase stock in Amazon because you think it is a great company and its shares will increase in value. To do this which of the following is the market would you most likely use to purchase the stock? O Secondary market O Exchange market O Primary market O Financial market
You want to purchase stock in Amazon because you think it is a great company and its shares will increase in value. To do this which of the following is the market would you most likely use to purchase the stock? O Secondary market O Exchange market O Primary market O Financial market
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You want to purchase stock in Amazon because you think it is a great company and its shares will increase in value. To do this which of
the following is the market would you most likely use to purchase the stock?
O Secondary market
O Exchange market
O Primary market
O Financial market
Expert Solution
Step 1
Primary market is a place where the stocks are created or issued for the first time. On the other hand, secondary market is a place where they are traded. Therefore, to purchase an already existing stock such as Amazon, we should use the secondary market such as NASDAQ and NYSE.
Financial market is a broader term for stock, bond and derivatives market whereas exchange markets are usually for the trading of forex or currencies.
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