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Which of the following is an example of a primary market for securities? O A public company raises additional equity through a seasoned equity offering. O A market maker purchases securities on her own account O Bonds and currencies are traded through a network of dealers rather than a central exchange O An individual invests in individual stocks by purchasing them through her broker instead of investing in a mutual fund.
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Answer #1

Answer : A public company raises additional equity through a seasoned equity offering.

Explanation :To raise capital, businesses may choose to sell or float securities. The market where fresh issues of stocks, bonds, or other types of securities are marketed to the public by investment bankers, is called the Primary Market. In simple terms, a primary market is where securities are sold for the first time. Purchase or sale (trading) of already issued securities among investors takes place in the Secondary Market.

There are 2 types of primary market issues of common stock:

*Initial Public Offerings( IPOs)

*Seasoned new issues/Seasoned Offerings, are offered by corporations that are already publicly listed.

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