The market in which new securities are originally sold to investors is called the _____ market.

Question

Quizplus · Accepted Answer

The primary market is where new securities are issued and sold to the public for the first time. This is also known as the IPO (Initial Public Offering) market. The other choices are not correct as they refer to different markets. The secondary market is where securities are bought and sold after their initial offering, the open market is a term used to describe trading in publicly listed securities, and the free market is a broader term used to describe the overall economic system.

The Market in Which New Securities Are Originally Sold to Investors