When one owner or creditor sells to another, the transaction takes place in the
Blank
______ market.

Question

When one owner or creditor sells to another, the transaction takes place in the 
Blank
______ market.

BlackTom AI · Accepted Answer

The question asks about the market in which a transaction occurs when one owner or creditor sells to another, and provides four answer choices.
Option 1: 'rudimentary' – This term would describe something basic or undeveloped, but it is not a standard descriptor for market segmentation in finance or securitization. It mischaracterizes the level or type of market in which sales between owners or creditors occur.
Option 2: 'underwriting' – Underwriting refers to the process by which an underwriter assesses risk and commits to issuing or guaranteeing securities, often in primary markets or in insurance contexts. It does not describe the market where secondary transfers between existing holders happen, so this is not the correct classification for such a transaction.
Option 3: 'secondary' – In financial markets, the term 'secondary market' denotes trading of existing securities or assets between investors after the initial issuance. When one owner or creditor sells to another, the transaction takes place in this market, which is precisely the scenario described in the question.
Option 4: 'primary' – The primary market is where new securities are issued and sold for the first time to investors. Since the question specifies selling from one owner or creditor to another, this option is incorrect because it refers to initial issuances rather than transfers between existing holders.
Overall, the reasoning aligns with standard market structure terminology: primary for new issues, secondary for transfers of existing instruments, with underwriting and rudimentary not fitting the described transfer scenario. The third option best matches the described process of one holder selling to another, distinguishing it from issuing or underwriting activities in other options.

When one owner or creditor sells to another, the transaction takes place in the Blank ______ market.

View Explanation

Log in for full answers

Similar Questions

Investors trade previously issued securities in the ________ market(s).

The secondary market allows investors to buy or sell bonds and equities after they were issued in the primary market

Which of the following is an example of both a capital market and a secondary market transaction?

A financial market in which previously issued securities can be resold is called a ________ market.

Investors trade previously issued securities in the ________ market(s).

You recently sold 200 shares of Disney stock, and the transfer was made through a broker. This is an example of:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler