Which of the following accurately distinguishes between primary and secondary markets?
1
Primary markets are where financial instruments are traded among investors, while secondary markets are where new securities are issued.
2
In primary markets, securities are issued for the first time to raise capital, while in secondary markets, existing securities are traded among investors.
3
Primary markets deal with trading foreign exchange, while secondary markets deal with trading bonds and equities.
4
The primary market is a market for short-term financial instruments, while the secondary market is for long-term financial instruments.
5
Primary markets are exclusively for government securities, while secondary markets are for corporate securities.