The market for stocks progresses through a series of steps. Which step

QUESTION

The market for stocks progresses through a series of steps. Which step comes last in the process?

A) Investment banks buy stocks.
B) Corporations issue stocks.
C) Investment banks form a syndicate.
D) Investors sell stocks on an exchange.
E) Investment banks sell stocks.

ANSWER

Answer: D
Explanation: D) After investment banks sell the initial corporate issue of stocks to investors on the primary securities market, investors can buy and sell the stock among themselves through the secondary securities market.