Question

Ted currently owns 100 shares of a publicly traded stock which he would like to sell. Which one of the following provides the most efficient means for Ted to sell his shares?

a. Initial public offering (IPO)
b. Secondary market
c. Primary market
d. Private placement

Answer 1

The most efficient means for Ted to sell his shares is in the secondary market.

Step-by-step explanation:

The most efficient means for Ted to sell his shares is in the secondary market.

The secondary market refers to the market where existing shares of a publicly traded company are bought and sold among investors. In this market, Ted can sell his 100 shares to other individual investors interested in buying them.

Unlike the primary market, which includes processes like initial public offerings (IPOs) and private placements, the secondary market allows for quicker and more convenient transactions.