Detailed Answer
(d) The requirement is to identify the purpose of the
secondary market. Answer (d) is correct because outstanding
stocks of publicly owned companies are traded among investors
in the secondary market. The original issuer receives no additional
capital as a result of such trades. Answers (a) and (b) are
incorrect because firms raise capital by issuing new securities in
the primary market, and the initial public offering market is a
frequently used term for the market in which previously privately
owned firms issue new securities to the public. Answer (c) is
incorrect because the over-the-counter market is the network of
dealers that provides for trading in unlisted securities.