The issuing of new securities, mortgages, and other claims to wealth takes place in the:
A) secondary market
B) money market
C) primary market
D) securities market

Question

The issuing of new securities, mortgages, and other claims to wealth takes place in the:
A)	secondary market
B)	money market
C)	primary market
D)	securities market

Quizplus · Accepted Answer

The primary market is where new securities, mortgages, and other claims to wealth are issued for the first time. This is the market where the issuer receives the funds from the sale of the security. The secondary market is where existing securities are traded among investors, and the money market is a subsector of the financial market for short-term borrowing and lending. The term "securities market" is often used interchangeably with the stock market, which is a part of the secondary market.

The Issuing of New Securities, Mortgages, and Other Claims to Wealth