New issues of securities are made in the secondary market Select one: O a. False O b. True
Which of the following is not the function of the secondary market Select one: a. Marketability to securities O b. Liquidity of securities c. It guarantees fixed rate of return to the investor O d. None of these

1) False

New issue of securities is done in the primary market, in the secondary market they are traded which enhances its liquidity. When securities are issued for the first time, they are issued in the primary market.

2) The correct answer is

C. It guarantees fixed rate of return to the investor

Secondary market does not guarantee any types of rate of return to any type of investor, it enhances the liquidity of the security and also the marketability as more people can buy and sell the security. So, a and b are actually the functions of the secondary market.