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

Question

Quizplus · Accepted Answer

A corporation acquires new funds in the primary market when it issues and sells new securities, such as stocks or bonds, through an investment bank. In the secondary market, investors trade already-existing securities among themselves, without the involvement of the issuing corporation. Therefore, options A, C, and D are incorrect.

A Corporation Acquires New Funds Only When Its Securities Are