These are the options for the Question: Which of the following statements is incorrect ?
(A) Capital Market refers to facilities and institutional rraneemanis through which long-term funds, both debt and equity are raised and invested.
(B) Secondary market is the market where securities are sold by the company to the investor directly or through an intermediary
(C) Pri Primary Market is the Market where only buying of securities takes place. Securities can not be sold there
(D) Money Market is a market for short term funds which deals in monetary assets whose period of maturity is upto one year
The correct option is:
The incorrect statement among the following statements is:
(B) Secondary market is the market where securities are sold by the company to the investor directly or through an intermediary.
The correct statement is:
(B) Secondary market is the market where securities are bought and sold among investors, and not by the company.
Explanation:
The secondary market is a financial market where investors buy and sell securities that have already been issued by companies. It is a market for the trading of already issued securities such as stocks, bonds, and debentures. In the secondary market, securities are bought and sold among investors and not by the company.
On the other hand, the primary market is a market where new securities are issued by the company and sold to investors for the first time. The primary market is also known as the new issue market. The primary market is used by companies to raise new capital for their business.
Therefore, the correct statement is (B) Secondary market is the market where securities are bought and sold among investors, and not by the company.
