Question

If you purchase 100 Telstra shares on the ASX today, the transaction is most likely occurring

a) in the secondary market

b) in the debt market

c) in the primary market

d) in the private placement market

e) in a rights issue

Answer 1

( The right option is in the secondary market il. option CA). 'The meaning of all the terus mentioned in the optious can clarify why the option A is conect. → Secondary Market or stock market is a market Where existing sewwiites like shares & debeutuses etc. are traded. Shock exchanges provides a regulated mechanism for purchase and sale of existing securinës, As in our question, Asx ie Australian Shock exchange and Telstra is an Australian corporation, heu the transachon can be considered as recondary as the existing securities are puchased because it is not the company that is offering the shares. Mauket » Debt is generally the market where are traded. It is also dest instrumeute known as bond market as you gue rally i bonds, notes, bills etc. are traded. Primary market is a market of new issue I that deals in the new securities which и моt ava labe и Blu рино реному . - Private Placement Market is a method of issuing securites to a selected group of o investors of own cheate so as to have a cs assumpner Scanned, without

- Right Issue is simply an option or invitahon to purchase certain securities at a certain puce to the existing shareholder. It is a pre-emptive rigut for the existing ones to urethaad with thares i further issues of a company. CamScanner C
Note: If you have any query or require more information, mention it in comments.