The financial market where a new security is sold for the first time is:
A) a primary market.
B) a secondary market.
C) an indirect financial market.
D) none of the above.

Question

Quizplus · Accepted Answer

A primary market is where new securities are sold for the first time, typically through an initial public offering (IPO). In contrast, a secondary market involves the buying and selling of existing securities among investors, such as on a stock exchange. Indirect financial markets refer to markets where financial intermediaries facilitate transactions, such as banks or insurance companies. Therefore, the correct choice is A) a primary market.

The Financial Market Where a New Security Is Sold for the First