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Shriniwas has 2,500 equity shares of K.C.L. company. He wants to sell these shares. Identify the market which he should approach.

Solution

Correct Option: 3

Shriniwas already holds existing equity shares and wants to sell them to another investor. Trading of securities already issued takes place in the secondary market (stock exchange). The new issue or primary market is where fresh securities are issued by the company; money market deals in short-term instruments.

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