New issues of stocks and bonds are sold directly to the public and to institutions in what is known as the primary market.

Question

Quizplus · Accepted Answer

In the primary market, new issues of stocks, bonds, and other securities are sold directly to investors, often through underwriting processes involving financial institutions. This is the market where securities are created before they are traded in the secondary market.

New Issues of Stocks and Bonds Are Sold Directly to the Public