Which of the following is NOT true of a stock exchange? A) It can exe

QUESTION

Which of the following is NOT true of a stock exchange?

A) It can execute stock trades via brokers on a trading floor.
B) It can sell stocks issued directly from corporations.
C) It can link buyers and sellers of stock directly.
D) It can focus on trading stock of particular types of companies.
E) It sells stocks on the secondary market.

ANSWER

Answer: B
Explanation: B) A stock exchange, or stock market, is a secondary market in which members buy and sell stocks already issued by companies on the primary market.