Author Question: There are two major markets for the sale of stock: the primary market and the secondary market. ... (Read 66 times)

dalyningkenk · **on:** Jul 10, 2018

There are two major markets for the sale of stock: the primary market and the secondary market.

Indicate whether the statement is true or false.

Question 2

Which of the following statements is TRUE?

A) The dealers of stock are not allowed to make money on the difference between what they buy the stock for and what they sell it for.
B) A bear market is a prolonged rising market, one in which stock prices in general are increasing.
C) The ask price is the price at which a dealer is willing to sell, and the bid price is the price at which a dealer is willing to buy.
D) A bull market is a prolonged declining market, one in which stock prices in general are decreasing.

coyin · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: TRUE

Answer to Question 2

Answer: C
Explanation: C) Dealers make money on the difference between what they buy stock for and what they sell it for, much as a car dealer makes money by buying a used car at one price and then selling it later at a higher or marked-up price. A bull market is a prolonged rising market, one in which stock prices in general are increasing. A bear market is a prolonged declining market, one in which stock prices in general are decreasing.