Describe the two methods of organizing a secondary market.

Expert Solution

A secondary market can be organised as an exchange their buyers and sellers meet in one Central location to conduct trade.

An example of the exchange is the New York stock exchange.

Secondary market can also be organised over-the-counter market. In this type of market, dealers from different location buy and sell securities to anyone who comes to them and is willing to accept their prices.

An example of over-the-counter market is federal funds market.

Rahul Sunny answered 2 years ago

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