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  1. Home
  2. FINRA
  3. Securities Industry Essentials Exam (SIE)
  4. FINRA.SIE.v2025-05-31.q56
  5. Question 1

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Question 1/56

Which of the following responses accurately describes a secondary market transaction?

Correct Answer: C
A secondary market transaction occurs when securities are bought and sold between investors, typically on an exchange.
* C is correctbecause securities purchased on a registered exchange are secondary market transactions.
* Ais incorrect as open-end mutual fund shares are purchased directly from the issuer.
* Brefers to the primary market.
* Dis also incorrect as private placements occur in the primary market.

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Other Question (56q)
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