The market in which new securities are originally sold to investors is called the ________ market.
A)dealer
B)auction
C)over-the-counter
D)secondary
E)primary

Question

Quizplus · Accepted Answer

The primary market is where new securities are initially offered to the public for purchase. This can happen through a process called an initial public offering (IPO), where a company sells its stock to the public for the first time. The other options are not the correct answers. Dealer markets are where transactions occur between dealers, not the public. Auction markets are usually for trading commodities, not securities. Over-the-counter markets are for trading securities that are not listed on formal exchanges. Secondary markets are where previously issued securities are bought and sold.

The Market in Which New Securities Are Originally Sold to Investors