Asked by DYLAN HOLLOWAY on Jul 20, 2024

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When a corporation issues additional shares of common stock to the general public, they do so:

A) In the primary market.
B) Through a dealer in the secondary market.
C) Through a broker in the secondary market.
D) Only through the OTC market.
E) Only through the private markets.

Common Stock

A type of equity ownership in corporations, where shareholders have voting rights and potentially dividends.

Primary Market

The financial market where new securities are issued and sold for the first time, often via initial public offerings (IPOs).

OTC Market

Over-The-Counter Market; a decentralized market where securities not listed on formal exchanges are traded directly between parties.

  • Recognize and delineate the attributes of secondary markets.
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Verified Answer

MG
Moumita GhoshJul 26, 2024
Final Answer :
A
Explanation :
In the primary market, corporations issue new securities directly to investors. This is the market where new shares of stock are first sold to the public, directly by the issuing company.