Understanding Stock Exchanges

Stock exchanges play a vital role in the equity markets, facilitating the buying and selling of shares by providing a structured and regulated environment. Understanding the structure and operation of these exchanges is crucial for investors. Consider the following statements regarding stock exchanges:

1. All stock exchanges operate under the same regulatory framework, regardless of their geographical location.

2. Secondary markets are where previously issued shares are bought and sold, providing liquidity to investors.

3. The primary function of a stock exchange is to provide a venue for companies to issue new shares to the public for the first time.

Which of the following statements is true?