What is the term for the price at which a security is bought or sold in the secondary market?  A. Face value  B. Book value  C. Market price  D. Par value

Break Down the Problem

1. Identify the context: The question pertains to finance, specifically regarding the pricing of securities in the secondary market.
2. Define the key terms: Understand the meaning of face value, book value, market price, and par value to determine which term correctly refers to the price at which securities are bought or sold.

Relevant Concepts

1. Face Value: The nominal value or dollar value of a security stated by the issuer.
2. Book Value: The value of an asset according to its balance sheet account; often reflects the cost of an asset minus any depreciation.
3. Market Price: The current price at which an asset or service can be bought or sold.
4. Par Value: A value assigned to a security by the issuer, often synonymous with face value.

Analysis and Detail

• The question is asking specifically about the price in the secondary market where securities are traded after the initial issuance.
• Among the options provided, "market price" directly refers to the value at which securities are offered in the secondary market.

Verify and Summarize

• Face value and par value do not apply in the context of traded prices post-issuance.
• Book value does not reflect current trading conditions.
• Thus, market price is the only option that accurately describes the situation in the secondary market.

Final Answer

C. Market price