Question

Which financial market(s) are involved when a public company issues more stocks?

		secondary market, capital market, equity market
		primary market, capital market, equity market
		secondary market, money market, debt market
		primary market, money market, equity market

Answer 1

Correct answer is Option (B) Primary Market, Capital Market, Equity Market.

When the public company issues stocks, also called a IPO or FPO it is done on the Primary market. The capital markets are those where the long term Equity or debt security are traded. The equity market also means the market where the stocks are bought and sold.

On the other hand, Secondary market is where the Stock is traded after the initial issue from Company. The money market is where the money market instrument such as notes are traded and it is not involved in issue of stock by a company.