What is the main activity in the primary market of the stock exchange?

Question

Quizplus · Accepted Answer

The main activity in the primary market of the stock exchange is that the firm raises funds from investors. In the primary market, companies issue new stocks to raise capital to finance their operations and expansion. Investors can buy these newly issued shares directly from the company at the offering price. This differs from the secondary market, where investors buy and sell already existing shares among each other. Therefore, options A, B, and D are incorrect.

What Is the Main Activity in the Primary Market of the Stock