Primary market but that lack active secondary market

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Reference no: EM131957922

Many limited partnership shares (units) were sold in the primary financial markets during the early 1980's. Unfortunately for the purchasers of these investments, there is no active secondary market for most of these limited partnerships units.

a. Do you think these units are highly liquid? Why or Why not?

b. Can you think of other investments with an active primary market but that lack an active secondary market?

c. What effect do you think the lack of a secondary market has on an investment's primary market? (Hint: Consider the baseball card craze. Do you think that baseball card manufactures have a stake in the active trading of baseball cards among collectors?)

Reference no: EM131957922

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