DQ1A - Exchange, as well as all other stock exchanges, the...

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What is the capital market? How is the primary market different from the secondary market? What’s the Efficient Market Hypothesis? In your opinion, are these markets efficient? Why or why not? The market for trading long-term debt instruments (those that mature in more than one year). The first buyer of a newly issued security buys that security in the primary market. All subsequent trading of those securities is done in the secondary market. The market where securities are traded after they are initially offered in the primary market. Most trading is done in the secondary market. The New York stock
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Unformatted text preview: Exchange, as well as all other stock exchanges, the bond markets, etc., are secondary markets. Seasoned securities are traded in the secondary market. An investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. I believe that these markets are efficient. The reason why I say they are efficient is because they are still trying to keep the market running. If these markets were not operating then I would say they are not efficient....
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This note was uploaded on 04/11/2011 for the course FIN 370 taught by Professor Unknown during the Spring '08 term at University of Phoenix.

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