Capital MarketsQuestion 299 of 398
In which market does an issuer sell newly created securities directly to investors and receive the proceeds of the sale?
a.The primary market
b.The secondary market
c.The third market
d.The fourth market
Explanation
In the primary market, the issuing company sells new securities and receives the capital raised. Once those securities begin trading among investors, the transactions occur in the secondary market, where the issuer receives no proceeds.
Law Reference: Securities Act of 1933Practice all 398 questions free — no signup required.
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