Both for-profit corporations and government agencies rely on primary markets to raise funds by issuing bonds.

Question

Quizplus · Accepted Answer

Both for-profit corporations and government agencies have the option of issuing bonds in primary markets as a means of raising funds. In a primary market, securities such as bonds are sold directly to investors, with the proceeds going to the issuer. This allows corporations and government agencies to raise capital for their operations or projects, with the promise of future interest payments and the eventual repayment of principal.

Both For-Profit Corporations and Government Agencies Rely on Primary Markets