All the investment vehicles that you can use in hour investment plan are traded in the securities markets in the form of stocks, bonds and other financial instruments. There are physical places such as the NYSE (New York Stock Exchange) or the electronic networks such as NASDAQ (National Association of Securities Dealers Automated Quotations). Securities markets can be divided into primary and secondary markets. When previously issued securities are sold and bought by investors in the market, the transactions take place in the markets. Within the arena of security trading, the secondary market plays an extremely important role. The secondary market can be divided into broker markets and dealer markets. For each of the following statements, indicate by checking the appropriate boxes whether it is true of broker markets, dealer markets, both, or neither.
Market orders are posted electronically and are filled immediately at the best available price.
a. The party buying the security directly transacts with the party selling the security
b. Trades take place on a physical trading floor.
c. This market facilitates the sale of new stock from corporations to private investors.
