A market for second-hand shares is known as the

A market for second-hand shares is known as the

• A. Bond market
• B. Stock market
• C. Currency market
• D. Share market

Answer: (B)

The main idea is understanding where investors trade existing shares. When shares have already been issued and are being bought and sold among investors, that marketplace is known as the stock market. This is the secondary market for equities, distinct from the primary market where new shares are issued by companies to raise capital. The bond market deals with debt securities, the currency market with foreign exchange, and while some people say “share market,” the standard term used here is “stock market.”

The main idea is understanding where investors trade existing shares. When shares have already been issued and are being bought and sold among investors, that marketplace is known as the stock market. This is the secondary market for equities, distinct from the primary market where new shares are issued by companies to raise capital. The bond market deals with debt securities, the currency market with foreign exchange, and while some people say “share market,” the standard term used here is “stock market.”