An important financial institution that assists in the initial sale of securities in the primary market is the
A)investment bank.
B)commercial bank.
C)stock exchange.
D)brokerage house.

Question

Quizplus · Accepted Answer

Investment banks specialize in underwriting and assisting in the initial sale of securities in the primary market. They help companies and governments raise capital by issuing stocks, bonds, and other securities. Commercial banks generally do not have the same level of expertise or involvement in the securities issuance process. Stock exchanges and brokerage houses primarily facilitate the trading of securities in the secondary market, rather than the initial issuance.

An Important Financial Institution That Assists in the Initial Sale