Discuss how primary market is dependent on secondary market

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1. Define liquidity and discuss the factors that contribute to it. Give examples of a liquid asset and an illiquid asset, and discuss why they are considered liquid and illiquid.

2. Define a primary and secondary market for securities and discuss how they differ. Discuss how the primary market is dependent on the secondary market.

3. Give an example of an initial public offering (IPO) in the primary market. Give an example of a seasoned equity issue in the primary market. Discuss which would involve greater risk to the buyer.

Reference no: EM13923989

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