If the issuing firm's financial statements change because of the sale of stock, the trade was done in the _____ market.
A) primary
B) secondary
C) third
D) fourth

Question

Quizplus · Accepted Answer

The primary market is where new issues of securities are sold to initial buyers by the issuer. The sale of stock in the primary market directly affects the issuing firm's financial statements by increasing its equity capital.

If the Issuing Firm's Financial Statements Change Because of the Sale