The stock market is a market for

Step 1: Analyze the question The question asks what the stock market deals in, that is, what is traded there.

Step 2: The concept A stock market (stock exchange) is an organized market where long-term financial securities are bought and sold. These include:

• Shares (equities) of companies, whether newly issued (the primary market) or already issued and being resold (the secondary market, i.e. "second hand" shares)
• Bonds, debentures and government stocks, which are long-term debt instruments

In Nigeria, this is the Nigerian Exchange (NGX), formerly the Nigerian Stock Exchange.

Step 3: Check each option

• A. New and second hand shares: Correct. New shares are sold in the primary market, and existing shares are resold in the secondary market. This is the best description of the stock market.
• B. Debentures: These are traded on the stock market, but they are only one type of security. The option is too narrow and leaves out shares, the main item.
• C. Goods and services: These are traded in commodity and product markets, not the stock market.
• D. Short term securities: Short-term instruments such as treasury bills and commercial papers belong to the money market, not the stock market (a capital market institution).

Step 4: Answer The stock market is a market for new and second hand shares, so the answer is A.

Tip: Remember the pairing:

• Money market → short-term funds (treasury bills, commercial papers)
• Capital market / stock market → long-term securities (shares, debentures, bonds)

If you see "short term" in an option about the stock market, it is usually a trap.