SIE Exam Question 437: Answer and Explanation

Question: 437

Which of the following transactions takes place in the secondary market?

• A. A customer places a trade to sell a stock and it is executed on the NASDAQ.
• B. An institution transacts a 1 million share block in dark pool.
• C. A broker dealer sells an OTCQX stock to a hedge fund.
• D. A customer buys an IPO before it is listed on the NYSE.

Correct Answer: A

Explanation:

A: Secondary market transactions occur on stock exchanges. Dark pool transactions in large blocks are known as the fourth market while buying an IPO before the stock is listed on an exchange is the primary market.