Section 1 - Instruction

You've learned that primary markets are for creating new securities and raising capital, while secondary markets are for trading existing securities. Let's practice applying these concepts.

Engagement Message

Can you recall the most famous type of primary market event?

Section 2 - Practice

Type

Sort Into Boxes

Practice Question

Sort these terms into the correct market type.

Labels

  • First Box Label: Primary Market
  • Second Box Label: Secondary Market

First Box Items

  • IPO
  • New capital
  • To the company

Second Box Items

  • NYSE
  • Liquidity
  • From an investor
Section 3 - Practice

Type

Multiple Choice

Practice Question

You use your brokerage app to buy 50 shares of a well-known tech company that went public years ago. Which market are you participating in?

A. The primary market
B. The secondary market
C. The IPO market
D. The bond market

Suggested Answers

  • A
  • B - Correct
  • C
  • D
Section 4 - Practice

Type

Fill In The Blanks

Markdown With Blanks

A healthy secondary market provides [[blank:liquidity]], which makes investors more willing to buy new shares during an [[blank:IPO]] in the primary market. This creates a positive [[blank:feedback]] loop.

Suggested Answers

  • liquidity
  • IPO
  • feedback
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