When a corporation uses the financial markets to raise new funds, the sale of securities is made in the
A) primary market.
B) secondary market.
C) online market.
D) third market.

Question

Quizplus · Accepted Answer

The primary market is where corporations sell newly issued securities to raise funds. This is where the initial transaction takes place between the corporation and investors. The secondary market is where investors trade previously issued securities among themselves, and the third market is a term used to describe trading of NYSE-listed securities on non-exchange platforms. The online market is not a commonly used term in finance and does not specifically refer to the primary market.

When a Corporation Uses the Financial Markets to Raise New