When corporations need to raise funds through stock issues,they rely on the:

Question

Quizplus · Accepted Answer

When corporations need to raise funds through stock issues, they go to the primary market. This is where new securities are issued and the proceeds go directly to the issuer.

B, C, and D are incorrect.

B: The secondary market is where previously issued securities are bought and sold among investors.

C: There is no such thing as a tertiary market.

D: The NASDAQ exchange is a specific exchange where securities can be traded, but it is not the only exchange and not all corporations will use it to raise funds through stock issues.

When Corporations Need to Raise Funds Through Stock Issues,they Rely