The primary market is defined as the market:
A) Wherein the original sale of securities by the issuer to the general public occurs.
B) Where stocks and bonds are exchanged between dealers.
C) Mechanism by which a sale of a financial instrument between two shareholders is conducted.
D) Operated by brokers for the benefit of shareholders.
E) Commonly known as the over-the-counter market.

Question

Quizplus · Accepted Answer

The primary market is where securities are sold for the first time by the issuer to investors, making option A the correct definition. This is distinct from the secondary market, where securities are traded among investors after the initial issuance.

The Primary Market Is Defined as the Market