In the ____ market, the firm receives the proceeds from the sale of new securities.

Question

Quizplus · Accepted Answer

In the primary financial market, new securities are issued and sold for the first time to investors, and the proceeds from the sale go to the issuing firm. This is different from the secondary financial market, where previously issued securities are bought and sold among investors, and the proceeds go to the selling investor rather than the issuer. The over-the-counter market refers to trading that occurs directly between two parties without the use of a formal exchange, while a fully integrated market does not exist as a common term in finance.

In the ____ Market, the Firm Receives the Proceeds from the Sale