IBM decides to issue new stock. The stock will be sold on the ___________ market.

Question

Quizplus · Accepted Answer

The primary market is where newly issued securities, like stocks, are sold for the first time directly from the issuer to investors. In this case, IBM is issuing new stock, so it would be sold in the primary market. The secondary market, on the other hand, is where previously issued securities are bought and sold between investors, so it wouldn't be the correct choice for this scenario. The third and fourth markets do not exist. The TSX (Toronto Stock Exchange) is a specific stock exchange and not relevant to this question.

IBM Decides to Issue New Stock