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If you purchase 100 Telstra shares on the ASX today, the transaction is most likely occurring: Group of answer choices in the secondary market. in the debt market. in the private placement market. in the primary market. in a rights issue.

Question

If you purchase 100 Telstra shares on the ASX today, the transaction is most likely occurring:

Group of answer choices

in the secondary market.

in the debt market.

in the private placement market.

in the primary market.

in a rights issue.

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Solution

If you purchase 100 Telstra shares on the ASX today, the transaction is most likely occurring in the secondary market. The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market". In contrast, the primary market is where companies sell new shares to the public for the first time, such as with an initial public offering (IPO).

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