_____ deals in only new securities i.e., which were not available previously.*New Issue Market (NIM)Primary marketOriginationsecondary marketstock markets
Question
_____ deals in only new securities i.e., which were not available previously.
- New Issue Market (NIM)
- Primary market
- Origination
- Secondary market
- Stock markets
Solution
The correct answer to the question is Primary market.
Explanation:
The primary market, also known as the new issue market, is where new securities are created and offered to investors for the first time. In this market, companies issue new stocks and bonds to raise capital, which means these securities have not been available previously.
- New Issue Market (NIM): This term is often used interchangeably with the primary market, but typically places greater emphasis on the process of issuing new securities.
- Secondary Market: This is where previously issued securities are traded among investors. In this market, there are no new securities being created or sold.
- Stock Markets: This term generally refers to the overall market where securities are bought and sold, which includes both the primary and secondary markets.
Thus, the primary market captures the essence of dealing exclusively with new securities.
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