Which of the following is TRUE of a primary market?

Question

Quizplus · Accepted Answer

A primary market is the market where new securities are issued for the first time, and the issuer is directly involved in the transaction. This is in contrast to the secondary market, where existing securities are traded among investors. Option A is incorrect as financial derivatives are primarily traded in the derivatives market. Option B is also incorrect as The Sarbanes-Oxley Act primarily governs the reporting and disclosure requirements of public companies. Option C is incorrect as smaller, unlisted securities may be traded in various markets including the over-the-counter (OTC) market.

Which of the Following Is TRUE of a Primary Market