12 Questions
What is the primary market also known as?
New issue market
Which market facilitates trade in already-issued securities?
Secondary market
What is the main function of the secondary market?
Enabling investors to exit investments
Who provides the supply of capital in the securities market?
Investors
What are the two inseparable segments of the securities market?
Primary and secondary markets
Which component facilitates interaction between investors and borrowers in the securities market?
Intermediaries
What is the main role of stock exchanges in the primary market?
List securities
Who are considered to be institutional investors?
Insurance companies
What is the chief objective of investors according to the text?
To convert savings into financial assets that earn a return
What distinguishes retail investors from institutional investors based on the text?
Investment amount and sophistication of strategies
Which entities provide important infrastructure services to both primary and secondary markets according to the text?
Registrars and Transfer Agents (RTAs), custodians, and depositories
What is a characteristic of institutional investors as described in the text?
Their primary business may not be investing in securities
Learn about the structure and participants of securities markets, including the primary market for new issues and the secondary market for stock/securities trading.
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