Primary markets are markets _____.

Question

Quizplus · Accepted Answer

Primary markets are markets in which various organizations raise funds by issuing new securities. In other words, the primary market is where the first issuance of securities takes place, and the proceeds from the sale of these securities go directly to the organization issuing them. This differs from secondary markets (Answer D), where previously issued securities are traded among investors. Options and futures (Answer C) can be traded in both primary and secondary markets, but they are not the primary focus of these markets. Short-term instruments (Answer A) may also be traded in primary markets, but they are not the defining characteristic. Loans (Answer B) are not typically traded in primary markets.

Primary Markets Are Markets _____