What market is where transactions that generate new cash flow for the firm occur?

Question

Quizplus · Accepted Answer

Primary market transactions are where new securities are sold directly to investors, generating cash flow for the issuing company. This can occur through methods such as an initial public offering (IPO), private placement, or rights issue. Secondary market transactions involve the buying and selling of existing securities between investors, with no new cash flow generated for the issuing company. Commodities market transactions involve the trading of physical commodities such as gold or grain. An initial public offering (IPO) is a type of primary market transaction where a private company becomes public and issues shares of stock to investors for the first time.

What Market Is Where Transactions That Generate New Cash Flow