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    Secondary markets for corporation stock trades: Corporate liability

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    In secondary markets, there is no additional capital raised, yet can someone explain how the corporation whose securities are being traded, has nothing to do with the funds received. Because if there is some type of issue later, that company is liable, correct?

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    I have included information from my past experience and information I have been able to obtain from a few other sources. Basically, the issuance of stock shares by a company happens during their IPO. The IPO is managed by an "Underwriter," a firm that specializes in Initial Public ...

    Solution Summary

    The expert examines secondary markets for corporation stock trades and corporate liability.