Firms that issue securities receive financial capital from the sale of these securities when they are sold on the primary market, but not when they are sold on the secondary market.

Question

Quizplus · Accepted Answer

In the primary market, firms receive capital directly from investors when securities are initially issued. In the secondary market, securities are traded between investors, and the issuing firm does not receive any capital from these transactions.

Firms That Issue Securities Receive Financial Capital from the Sale