You want to purchase stock in Amazon because you think it is a great company and its shares will increase in value. To do this which of the following is the market would you most likely use to purchase the stock? O Secondary market O Exchange market O Primary market O Financial market

You want to purchase stock in Amazon because you think it is a great company and its shares will increase in value. To do this which of the following is the market would you most likely use to purchase the stock? O Secondary market O Exchange market O Primary market O Financial market

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter9: Stocks And Their Valuation

Section: Chapter Questions

Problem 8TCL

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You want to purchase stock in Amazon because you think it is a great company and its shares will increase in value. To do this which of
the following is the market would you most likely use to purchase the stock?
O Secondary market
O Exchange market
O Primary market
O Financial market

Expert Solution

Step 1

Primary market is a place where the stocks are created or issued for the first time. On the other hand, secondary market is a place where they are traded. Therefore, to purchase an already existing stock such as Amazon, we should use the secondary market such as NASDAQ and NYSE.

Financial market is a broader term for stock, bond and derivatives market whereas exchange markets are usually for the trading of forex or currencies.

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