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investing 2-17

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Which of the following statements about organized security markets is correct?
A. Organized security markets are examples of financial intermediaries.
B. Organized security markets transfer resources from savers to borrowers.
C. Organized security markets provide secondary markets.
D. Organized security markets aren’t subject to regulation.

I would think the answer is C

  • investing 2-17 -


  • investing 2-17 -

    that's the only one I can thank of because once a security has been issued on the primary market, it can be sold again in the secondary markets like AMEX and NYSE.

    The reason why I didn't select A and B because those are both the same answers. Financial intermediaries facilitates the transfer of funds from savers and borrowers.

    I didn't select D because AMEX and NYSE are subject to regulation.

    I would like to know why I would be wrong. Some of these questions I have are the ones I have left that I want to make sure my thinking is correct.

  • investing 2-17 -

    I misread D. You are correct. There are many secondary issues trades in regulated exchanges. ETFs are an example.

    I regret my error.

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