The market in which new securities are originally sold to investors is called the ________ market.

Question

Quizplus · Accepted Answer

The primary market is the market in which new securities are originally sold to investors. This is typically done through an initial public offering (IPO) or a seasoned equity offering (SEO). The other choices are not the primary market. The dealer market is a market where securities are traded after they have been issued, while the auction market is a market where buyers and sellers place bids and offers on an exchange. The over-the-counter market is a decentralized market where securities are traded directly between parties without a centralized exchange. The secondary market is where existing securities are bought and sold between investors.

The Market in Which New Securities Are Originally Sold to Investors