In a primary market,________ sell new issues of securities; in a secondary market,________ assist in trading previously issued securities.

Question

Quizplus · Accepted Answer

Investment banks sell new issues of securities in the primary market, while securities brokers and dealers assist in trading previously issued securities in the secondary market. Therefore, option (C) is the correct choice. Option (A) is incorrect because securities dealers do not typically sell new issues in the primary market. Option (B) is also incorrect because securities brokers do not typically assist in trading previously issued securities in the secondary market. Option (D) is partially correct, but not the best choice, as it implies that investment banks do not participate in the secondary market, which is not accurate.

In a Primary Market,________ Sell New Issues of Securities; in a Secondary