Financial markets can be categorized as those dealing with newly issued financial claims that are called the ________, and those for exchanging financial claims previously issued that are called the ________.

Question

Quizplus · Accepted Answer

The primary market deals with newly issued financial claims, such as IPOs, while the secondary market deals with the trading of previously issued financial claims, such as stocks and bonds. Therefore, choice D is the correct answer. Choice A and B are incorrect because they are essentially rewording the same concept. Choice C is incorrect because it refers to two different types of markets, rather than distinguishing between newly issued and previously issued financial claims.

Financial Markets Can Be Categorized as Those Dealing with Newly