Which of the following is an example of a bond being traded on the secondary market?(1 point)
Responses
an investor purchases a bond from a corporation
an investor purchases a bond from a corporation
an investor purchases a bond from the U.S. Treasury
an investor purchases a bond from the U.S. Treasury
an investor sells a bond to another investor
an investor sells a bond to another investor
an investor purchases a bond directly from a municipality
an investor sells a bond to another investor
The correct answer is:
an investor sells a bond to another investor. This is an example of a bond being traded on the secondary market.
The correct response that represents an example of a bond being traded on the secondary market is: "an investor sells a bond to another investor."
Explanation:
The secondary market refers to the market where already issued securities, such as bonds, are bought and sold among investors, rather than being issued directly by the issuer. In this case, when an investor sells a bond to another investor, it indicates that the bond is being traded on the secondary market. This means that the bond is being transferred from the initial investor to a new investor, rather than being purchased directly from the issuer (in the case of primary market transactions).