Corporations receive needed funds when they sell a new issuance of a security in the primary market.

Question

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Corporations sell new issuances of securities in the primary market to raise funds for their business activities. These securities can include common stock, preferred stock, bonds, and other debt securities. Investors who purchase these securities provide the necessary funds that the corporation needs to finance its operations, expand its business, or invest in new projects or acquisitions.

Corporations Receive Needed Funds When They Sell a New Issuance