When Zynga, the company behind the social games CityVille and Words With Friends, sold stock to the public for the first time in December 2011, funds were being raised in a ________ market, and when those newly issued shares are resold to other buyers, the sales take place in a ________ market.

Question

Quizplus · Accepted Answer

When a company initially sells its stock to the public, it is done in a primary market. This is because new shares are being created and sold to investors for the first time. However, when these shares are later resold to other buyers, it is done in a secondary market. Therefore, the correct answer is B - Zynga raised funds in a primary market and when its shares are resold, it will take place in a secondary market.

When Zynga, the Company Behind the Social Games CityVille and Words