Trading & MarketsQuestion 89 of 125
The primary market is where:
a.Issuers sell new securities to investors and raise capital
b.Investors trade previously issued securities among themselves
c.Only government bonds are traded
d.Options are exercised
Explanation
The primary market is where new securities are issued and sold by the issuer, with proceeds going to the company through an underwriting. Once issued, those securities trade among investors in the secondary market, where the issuer is no longer a party to the transactions.
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