When Electronic Arts,the company behind the games Zuma and Plants vs.Zombies,sold stock to the public for the first time in September 1989,funds were being raised in a ________ market,and when those newly issued shares are resold to other buyers,the sales take place in a ________ market.

Question

Quizplus · Accepted Answer

When a company sells its stock to the public for the first time, it is called an initial public offering (IPO) and the market where the stocks are first issued and sold is called the primary market. Therefore, the first part of the statement refers to a primary market. However, when the newly issued shares are resold to other buyers, it takes place in the secondary market. Therefore, the second part of the statement refers to a secondary market. Hence, the correct choice is B - primary; secondary.

When Electronic Arts,the Company Behind the Games Zuma and Plants