Corporations receive the proceeds for the sale of their stock in

Question

Quizplus · Accepted Answer

Corporations receive the proceeds for the sale of their stock in the primary market, which is where they originally issue and sell their stock to the public or institutional investors. In the secondary market, investors trade existing shares among themselves, and the corporation does not receive the proceeds from these transactions. Venture capital markets are typically used by startups to raise capital from investors in exchange for ownership stake, but this is not a market where corporations sell their stock.

Corporations Receive the Proceeds for the Sale of Their Stock