A corporation acquires new funds only when its securities are sold in the
A)primary market by an investment bank.
B)primary market by a stock exchange broker.
C)secondary market by a securities dealer.
D)secondary market by a commercial bank.

Question

Quizplus · Accepted Answer

A corporation acquires new funds when its securities are sold in the primary market by an investment bank. In the primary market, corporations issue new securities directly to investors, and the proceeds from the sale go directly to the corporation. The secondary market, on the other hand, is where investors buy and sell previously issued securities among themselves, and the corporation does not receive any new funds from those transactions.

A Corporation Acquires New Funds Only When Its Securities Are