In the U.S., these financial institutions arrange most primary market transactions for businesses.

Question

Quizplus · Accepted Answer

Investment banks are the financial institutions that primarily deal with arranging and underwriting primary market transactions for businesses. They help companies raise capital through methods such as initial public offerings (IPOs) and bonds issuance. Asset transformer refers to financial institutions that convert assets with less liquidity or higher risk into securities with broader market appeal. Direct transfer agents facilitate the direct transfer of securities between buyers and sellers without the involvement of intermediaries. Over-the-counter agents are the entities that provide trading facilities for securities that are not listed on formal exchanges. None of these options fit the role of arranging primary market transactions for businesses that investment banks primarily undertake.

In the US, These Financial Institutions Arrange Most Primary Market Transactions for Transactions