Question

Although you were not fortunate enough to get Chipper's Golf Resort stock [ticker symbol: CHPR] as an IPO, you are still thinking about trying to add some to your portfolio. Last week when you mentioned it to your broker, he said that there are plenty of shares trading on ____________, but, he wanted to send you the company's financial disclosures provided in the ______ before you finalize your decision.
A.the secondary market; prospectus
B. the NASDAQ; regulatory agreement
C. the OTC; regulatory agreement
D. the primary market; prospectus

Answer 1

Answer:

The answer is: A) the secondary market; prospectus

Explanation:

Secondary market refers to the stock exchange where investors buy and sell securities that they already possess. The secondary market is what most people think about when they refer to a stock market. A primary market only sells stocks that are being issued for the first time, like an IPO.

The prospectus of a company is a legal document provided by public companies or mutual funds that include information about the company's strategies, financial statements and top management's background.