Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:
___________ deals with buying and selling of old securities i.e. the market securities issued earlier are sold by existing investors in this market.
Options:
Venture capitalist
Angel Investor
Banks
Stock exchange
Correct Answer:
Stock exchange
Explanation:
Any transaction in shares or debentures subsequent to its primary offering is called "Secondary Transaction". Thus, the secondary capital market, which is also known as old securities market or stock exchange deals with buying and selling of old securities i.e. the market securities issued earlier are sold by existing investors in this market, thus paving way for the entrepreneurs that if they offer high returns to market, investors will remain inclined to invest therein.