When securities are issued in the primary market using the public offering method, securities are sold to one or more private investors under terms negotiated between the issuing firm and the investors.

Question

Quizplus · Accepted Answer

When securities are issued in the primary market using the public offering method, they are offered to the public at large, not private investors. The terms of the offering are typically set by the underwriter or the issuing firm with input from the underwriter.

When Securities Are Issued in the Primary Market Using the Public