True or False: Secondary markets are platforms for the buying and selling of existing securities.

The statement is true because secondary markets are specifically designed for the buying and selling of securities that have already been issued. When investors purchase securities in the secondary market, they are not directly providing funds to the issuing entity (like in primary markets); instead, they are trading existing securities among themselves. This facilitates liquidity in the market, allowing investors to sell their holdings without waiting for an issuance.

Secondary markets encompass a wide range of securities, including stocks, bonds, and other financial instruments, and are essential for price discovery. They provide the mechanism through which the current value of a security is established and can affect the total cost of capital for new issuers.

While primary markets deal with new securities that are being introduced to the market, secondary markets are vital for ensuring that investors have the opportunity to buy and sell as needed, which contributes to overall market efficiency.

The other options imply limitations that do not accurately represent the broader function of secondary markets, as they serve all types of securities, not just those related to specific types of entities such as corporations or governments.