Which of the following statements is true?
A) In the primary market, firms sell shares to investors and in the secondary market investors sell shares to investors.
B) In the primary market, investors sell shares to investors and in the secondary market firms sell shares to investors.
C) In the primary market, firms sell shares to investors for the first time and in the secondary market firms sell shares to investors in subsequent equity issues.
D) In the primary market, investors sell shares to investors for the first time and in the secondary market investors sell shares to investors after the initial sale.

Question

Quizplus · Accepted Answer

In the primary market, firms issue new securities and sell them to investors for the first time. The secondary market is where these securities are traded among investors after the initial issuance, without the issuing companies being directly involved.

Which of the Following Statements Is True