Jordan has a few thousand dollars to invest.He wants to find newly issued stock of a fast- growing new company.He will contact an underwriter and attempt to purchase the shares in the ________ market.
A)secondary
B)New York Stock Exchange
C)primary
D)NASDAQ
E)commodity

Question

Quizplus · Accepted Answer

When a new company issues its stock for the first time to the public, it is called an Initial Public Offering (IPO). The first buyers of these newly issued shares are participating in the primary market. Jordan would need to contact an underwriter, who is responsible for helping companies to issue and sell their stock in the primary market. Therefore, the best option for Jordan to purchase the shares of a newly issued stock of a fast-growing new company is the primary market.

Jordan Has a Few Thousand Dollars to Invest