Stocks are initially sold in the primary markets with the help of an investment banker serving as the underwriter.

Question

Quizplus · Accepted Answer

This is true. Stocks are first sold in the primary market through an underwriter such as an investment banker. The underwriter helps the company determine the price of the stock and ensures that there is enough interest from investors to sell the shares. Once the shares are sold, they can then be traded on the secondary market.

Stocks Are Initially Sold in the Primary Markets with the Help