Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:
Which of the following is the market which helps existing investors to sell their securities?
Options:
Primary Market
Secondary market
Commodity Market
Capital Market
Correct Answer:
Secondary market
Explanation:
SECONDARY MARKET: The secondary market is also known as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market. It also provides liquidity and marketability to existing securities. It also contributes to economic growth by channelising funds towards the most productive investments through the process of disinvestment and reinvestment. Securities are traded, cleared and settled within the regulatory framework prescribed by SEBI.