The sale of a new security directly to an investor or a group of investors is called
A) the secondary market
B) the primary market
C) the capital market
D) the private placement market

Question

Quizplus · Accepted Answer

The sale of a new security directly to an investor or a group of investors is called a private placement. Private placement is a form of fundraising that involves the sale of securities to a limited number of investors, such as institutional investors, wealthy individuals, or venture capitalists. This is in contrast to the primary market, which is open to the general public, and the secondary market, which is the market for trading existing securities. The capital market is a broader term that encompasses both the primary and secondary markets.

The Sale of a New Security Directly to an Investor