excise today：about primary capital markets and secondary capital markets

jenny34

41．Which of the following describes the most direct function of:  
primary capital markets?secondary capital markets?ASource of liquiditySecurity underwritingBSource of liquiditySource of new capitalCSource of new capitalSource of liquidityDSource of new capitalSecurity underwriting  
Select exactly 1 answers from the following: A. B. C. andD

Feedback: Correct answer: C
Feedback: Correct answer: CInvestment Analysis and Portfolio Management, 7th edition, Frank K. Reilly and Keith C. Brown (South-Western, 2003), pp. 108?122006 Modular Level I, Vol. III, pp. 231-236Study Session 12-52-c
    distinguish between primary and secondary capital markets, and explain how secondary markets support primary markets.     New issues of securities, that provide initial and/or additional capital for governmental units and corporations, are underwritten and sold in the primary market.
    secondary capital markets provide liquidity to the owners of existing securities.

rainingbeauty

see it. Primary market is the basis of Secondary market. Secondary market in return enhance primary market.