Markets in which new securities are issued by corporations to raise funds are called?

Question

Markets in which new securities are issued by corporations to raise funds are called?

primary markets
secondary markets
Gross markets
proceeds markets

LohaHridoy

5 views

2025-01-04 04:42

1 Answers

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AhmedNazir · Accepted Answer · 2022-09-01T13:21:41+06:00

Answer: Option 1

Markets in which new securities are issued by corporations to raise funds are called primary markets. The primary market is where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an example of a primary market.