Jason, a stockbroker at Securitas Financial Services, called you the other day asking if you would like to purchase an IPO. "The hot new company, Leafy Greens, is going public, and I thought you might want to get in on it," he exclaimed. If you agree to buy shares of this company, this trade will occur on the secondary market.

Question

Quizplus · Accepted Answer

An Initial Public Offering (IPO) is sold on the primary market. An IPO is a new issuance of stock or bonds that is being offered by a firm that wants to raise a large sum of money. It is the first time that this issuance is being offered, so it is sold in the primary market.

Jason, a Stockbroker at Securitas Financial Services, Called You the Other