A 'primary market' is a market:
A) only for equity issues by major or 'primary' companies.
B) where borrowers sell new financial instruments to buyers.
C) where savers sell new financial claims to borrowers.
D) where government securities are bought and sold.

Question

Quizplus · Accepted Answer

A primary market is where newly issued financial instruments (such as stocks, bonds, and other securities) are sold directly by the issuer to investors. This allows the issuer to acquire funds to finance their operations or new projects. Buyers in a primary market can include institutional investors and individual investors.

A 'Primary Market' Is a Market