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CFA Level 1
Equity Investments

Understanding Stock Exchanges and Market Statements

Medium Equity Markets And Instruments Stock Exchanges

In the context of stock exchanges, consider the following statements regarding market participants and their roles:

1. Market makers provide liquidity by being ready to buy or sell shares at publicly quoted prices.

2. A primary market allows companies to raise capital through the issuance of new securities, while the secondary market provides a platform for trading existing securities.

3. Dark pools are regulated exchanges that provide a platform for trading without the visibility of public markets.

Which of the following statements is true about stock exchanges?

Hint

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