SIE Exam Question 189: Answer and Explanation

Question: 189

The market in which securities are traded after they have been issued is the _________?

• A. Primary market
• B. Money market
• C. Super market
• D. Secondary market

Correct Answer: D

Explanation:

The market in which securities are traded after they have been issued is the secondary market. The primary market is the market in which securities are sold by the issuers to investors. The money market is where investors trade short-term debt securities such as loans, MBSs, and bonds. The third market involves trading exchange-listed stocks through an over-the-counter (OTC) market.