Securities traded in the stock exchanges are primary market transactions as the sales proceeds go to the issuing companies.

Question

Quizplus · Accepted Answer

Securities traded in the stock exchanges are secondary market transactions, as investors are buying and selling securities from one another, and the sales proceeds do not go directly to the issuing companies. The primary market is where initial public offerings (IPOs) take place, and the proceeds go to the companies issuing the securities.

Securities Traded in the Stock Exchanges Are Primary Market Transactions