Question

When an issuer sells a new financial asset to the public, it is sold in the:...

When an issuer sells a new financial asset to the public, it is sold in the: Select one:

a. Secondary market b. Commodity market c. Primary market. d. Intermediate market.

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Answer #1

(c) - Primary market.

The primary market is where new securities are first issued. Thereafter, they are traded on the secondary market.

(a) is incorrect - the secondary market is where securities already issued are traded between buyers and sellers

(b) is incorrect - this is the market for exchanging commodities, and commodity-based derivatives

(d) is incorrect - The primary market is where new securities are first issued.

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