A Market in which corporations raise funds through new issues of securities is referred to as a ____________.

Question

Quizplus · Accepted Answer

A market in which corporations raise funds through new issues of securities is called a primary market. In this market, securities are initially offered to the public through an initial public offering (IPO) or a seasoned equity offering (SEO). This is different from a dealer market, which is where securities are bought and sold among investors, or a spot market, which is where commodities are bought and sold for immediate delivery. A venture market is not a commonly used term in finance, but it may refer to a subset of the primary market specifically focused on small or emerging companies.

A Market in Which Corporations Raise Funds Through New Issues