Canadian Securities Course (CSC) Level 1 Practice Exam

What other ways can the capital market be categorized as?

1. Local, global, national

2. Primary, secondary, tertiary

3. Public, private, hybrid

4. Institutional, retail, wholesale

The correct answer is: Primary, secondary, tertiary

The capital market can be categorized in various ways, and one common categorization is into primary, secondary, and tertiary markets. - The primary market is where new securities are issued for the first time. This is where companies raise capital by selling new stocks or bonds to investors. - The secondary market is where previously issued securities are bought and sold among investors. This is where most trading occurs and where the price of securities is determined by market forces. - The tertiary market is not a commonly recognized category in the capital market. Hence, this option is incorrect. Therefore, the correct answer is B: Primary, secondary, tertiary.