Remote Inc.,an automobile company,decides to expand its operation abroad by setting up three new manufacturing plants.Since enough funds were not available for this expansion process,Remote decides to list its company on its national stock exchange and issue securities for raising additional capital.The market for Remote's securities can be described as a(n)______ market.
A)secondary
B)insider
C)primary
D)limit order

Question

Quizplus · Accepted Answer

When a company issues new securities to the public for the first time to raise capital, it does so in the primary market. This is where new stock or bond issues are sold directly from the company to investors.