A primary financial market is:

Question

Quizplus · Accepted Answer

A primary financial market refers to the market where newly issued securities are sold to investors for the first time. In this market, the funds are directly obtained by the borrower from the lender. Therefore, option B is the correct answer. Option A is incorrect because primary markets exist in different parts of the world, not just in specific cities. Option C is incorrect because US Treasury bonds are traded in both primary and secondary markets. Option D is incorrect because primary markets deal with newly issued securities and do not necessarily have restrictions on the quality of securities traded.

A Primary Financial Market Is