Question

The primary securities markets are a. the markets for previously issued securities such as the New York Stock Exchange b. the markets where financial assets such as stocks and bonds are initially issued c. the three most important financial markets in any economy d. the markets for stocks and bonds only

Answer 1

Answer:

The correct answer is option b.

Explanation:

The primary security market refers to the part of the capital market where the securities are initially issued. It is the market where the securities are created.  

In this market, the companies issue their securities such as bonds and stocks as initial public offerings. It is also called the new issue market. In this market, the newly issued securities are directly sold by the issuers to the investors.  

These securities then are traded in the secondary market by the investors. The secondary markets are stock markets such as NYSE and NASDAQ.