A primary market would be utilized when:

Question

Quizplus · Accepted Answer

A primary market is where securities are initially issued by companies in order to raise capital. Investors can buy these newly issued securities directly from the company or through underwriters. Choices A and B refer to the secondary market, where existing securities are bought and sold among investors. Choice D is not necessarily a determining factor in whether a transaction happens in the primary or secondary market.

A Primary Market Would Be Utilized When