Question

A market where new securities are bought and sold for the first time is known as...

A market where new securities are bought and sold for the first time is known as a _____ market.

Select one:

A. Primary

B. Secondary

C. Tertiary

D. Capital

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Homework Answers

Answer #1

Answer is Option (a) - Primary Market

In a primary market, securities are created for the first time for investors to purchase. Types of Primary Market Issuance are Public Issue/ Private Placement/ Preferential Issue/ QIP/ Rights Issue

Secondary Market - It is an exchange of existing shares between the shareholders as againt the primary market where shares are issued for the first time.

Tertiary Market - In this market exchange listed securities are traded over the counter between non-exchange listed brokers and institutional investors

Capital Market - It is a market where investment deals are made. These markets can be physical or virtual, but they all involve people or institutions buying and selling investments. E.g. New York Stock Exchange, or NYSE.

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