Match each capital market component or regulatory body on the left with its correct function or description on the right.
- Primary MarketThe platform where newly created securities are issued to the public for the first time.
- Secondary MarketThe market where investors trade previously issued stocks and bonds.
- Securities and Exchange Commission (SEC)The apex regulatory agency responsible for overseeing and registering capital market operations.
- Central Securities Clearing System (CSCS)The electronic depository that handles automated clearing, settlement, and custody of transactions.
Answer
Primary Market matches with the platform for issuing new securities; Secondary Market matches with the market for trading existing securities; Securities and Exchange Commission (SEC) matches with the apex regulatory agency overseeing capital market operations; Central Securities Clearing System (CSCS) matches with the electronic depository handling clearing and settlement.
Each capital market entity is correctly paired with its function: Primary Market handles initial issuance of new securities, Secondary Market facilitates trading of existing securities, SEC acts as the apex regulatory authority, and CSCS performs automated clearing and settlement of trades.
Step-by-Step Solution
Key Concept
Capital market structure, regulation, and trading infrastructure