Asked by Britney Hicks on Jul 04, 2024
Verified
New issues of stocks and bonds are sold directly to the public and to institutions in what is known as the primary market.
Primary Market
The market where firms raise financial capital.
New Issues
Refers to securities or stocks that are being offered to the public for the first time, typically through an initial public offering (IPO).
- Differentiate between primary and secondary markets for securities.
Verified Answer
AP
Argenis PerezJul 06, 2024
Final Answer :
True
Explanation :
In the primary market, new issues of stocks, bonds, and other securities are sold directly to investors, often through underwriting processes involving financial institutions. This is the market where securities are created before they are traded in the secondary market.
Learning Objectives
- Differentiate between primary and secondary markets for securities.
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