Discuss the characteristics of a good market

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Review Questions

1. Define market and briefly discuss the characteristics of a good market.

2. You own 100 shares of General Electric stock and you want to sell it because you need the money to make a down payment on a car. Assume there is absolutely no secondary market system in common stocks. How would you go about selling the stock? Discuss what you would have to do to find a buyer, how long it might take, and the price you might receive

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

4. 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: EM133028174

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