A "primary market" is a market
A)for government securities.
B)in which newly issued claims are sold to buyers by borrowers.
C)in which newly issued claims are sold by savers to borrowers.
D)for debt by large or "primary" corporations.

Question

Quizplus · Accepted Answer

A primary market is a market where newly issued claims are sold to buyers by borrowers. This can include stocks, bonds, and other financial instruments. It is different from a secondary market, where existing securities are bought and sold between investors. Government securities can be sold in both primary and secondary markets, but they are not the only type of security sold in the primary market. Similarly, the primary market is not limited to debt securities issued by large corporations.

A "Primary Market" Is a Market