In the market, the firm receives the proceeds from the sale of its securities.

Question

Quizplus · Accepted Answer

Proceeds from the sale of securities go to the issuing firm in a primary market. In contrast, in a secondary market, the transactions of securities take place among investors, and the proceeds go to the seller of the security. Fully integrated markets combine elements of both primary and secondary markets, while over-the-counter markets involve direct transactions between buyers and sellers without a centralized exchange.

In the Market, the Firm Receives the Proceeds from the Sale