With reference to the security markets in India, consider the following statements: 1. In the primary market, securities are traded between investors only. 2. The secondary market facilitates trading of securities that have already been issued in the primary market. 3. Stock exchanges provide the platform for trading in the secondary market. Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B

Notes:

Explanation:

In the primary market, securities are issued directly by the capital raiser (such as a company) to the investor. It is not a market where securities are traded between investors—that happens in the secondary market.
The secondary market is where existing securities (already issued in the primary market) are traded among investors.
Stock exchanges (like NSE, BSE) act as institutionalised platforms for trading in the secondary market.

Source: Indian Economy (Ramesh Singh)