Primary market is also referred as_____a.bond marketb.issue marketc.capital marketd.none of the abov
Question
Primary market is also referred as_____
a. bond market
b. issue market
c. capital market
d. none of the above
Solution
The primary market is also referred to as the issue market. This is where new securities are issued and sold for the first time, allowing companies to raise capital from investors. In this market, entities such as corporations and governments issue stocks and bonds, and investors purchase these securities directly from the issuers.
To clarify, the primary market differs from the secondary market, where previously issued securities are traded among investors. The focus of the primary market is on the creation of new financial instruments and the initial sale of these instruments, which is critical for liquidity and capital formation.
Thus, the correct answer to your question is b. issue market.
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