A primary financial market is:

Question

Quizplus · Accepted Answer

A primary financial market is where newly issued securities are sold, such as initial public offerings (IPOs), bond issuances, and other securities offerings. It is where companies go to raise capital by selling their securities to investors for the first time, and the transactions are facilitated by investment banks or underwriters. The New York Stock Exchange is a secondary market where previously issued securities are bought and sold, not a primary market. Choice A and B are incorrect because primary markets are not limited to just corporate stocks or AAA-rated securities.

A Primary Financial Market Is