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Which of the following is an example of a secondary market for securities? O An IPO O An individual purchases shares of a corporation on an exchange from a previous owner, not the corporation itself Purchasing foreign currency O A public company raises additional equity through a seasoned equity offering O
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Answer #1

When shares are originally issued in primary market, the issued shares will be outstanding. These shares then traded by investors in secondary market. i.e. resale and purchase and chain start in secondary market.

Hence, correct option is “An individual purchases shares of a corporation on an exchange from a previous owner, not the corporation itself”.

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