A Difference Between the Primary Market and the Secondary Market

A difference between the primary market and the secondary market is:

A) liquidity.
B) that primary markets allow corporations, government units, and others to raise needed funds for the expansion of their capital base.
C) that price competition in the secondary markets between different risk-return classes enables the primary market to price new issues at higher prices to reflect existing risk-return relationships.
D) that the secondary market is much more competitive than the primary market.

Correct Answer:

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