A purchase of a new issue of stock takes place
A) in the secondary market.
B) in the primary market.
C) usually with the assistance of an investment banker.
D) in the secondary and primary markets.
E) in the primary market and usually with the assistance of an investment banker.

Question

Quizplus · Accepted Answer

The purchase of a new issue of stock typically occurs in the primary market, where securities are sold for the first time, and it often involves the assistance of an investment banker to manage the sale, underwrite the securities, and help set the initial offering price.

A Purchase of a New Issue of Stock Takes Place