Asked by Meghan Maratea on May 12, 2024
Verified
Remote Inc.,an automobile company,decides to expand its operation abroad by setting up three new manufacturing plants.Since enough funds were not available for this expansion process,Remote decides to list its company on its national stock exchange and issue securities for raising additional capital.The market for Remote's securities can be described as a(n) ______ market.
A) secondary
B) insider
C) primary
D) limit order
Primary Market
The financial market where new securities, such as stocks and bonds, are initially issued and sold to investors.
Secondary Market
A financial market where previously issued securities and financial instruments such as stocks, bonds, options, and futures are bought and sold.
National Stock Exchange
A major securities exchange where stocks and other financial securities are bought and sold.
- Explain the procedure of issuing securities and differentiate between primary and secondary markets.
Verified Answer
Learning Objectives
- Explain the procedure of issuing securities and differentiate between primary and secondary markets.
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