Question 26 (1 point) Secondary markets in that an active secondary market drive

Question

Question 26 (1 point) Secondary markets in that an active secondary market drives up price for a security and 1) help frms 2) hurts firms in that an active secondary market drives up price for a security and 3) help firms in that an active secondary market reduces price for a security and therefore therefore decreases the interest rate on the security therefore increases the interest rate on the security. decreases the interest rate on the security. 4) hurts firms in that an active secondary market reduces price for a security and therefore increases the interest rate on the security.

Explanation / Answer

Ans

First is right option. Better price of security in secondary market leads to better price for ipo..This reduce interest rate

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