Final answer:
In the secondary market, prices are adjusted on the ex-date for cash dividends.
Step-by-step explanation:
The correct answer is Secondary.
The secondary market is where existing securities, such as stocks and bonds, are traded among investors. In this market, the price of the securities is adjusted on the ex-date for cash dividends. This means that when a company pays out a dividend to its shareholders, the price of the stock is reduced by the amount of the dividend on the ex-date, to reflect the fact that the shareholders will no longer receive the dividend.
For example, if a stock is trading at $100 and the company declares a dividend of $5 per share, the stock price would be adjusted to $95 on the ex-date to account for the dividend payment. This adjustment ensures that investors who buy the stock on or after the ex-date do not receive the dividend.