Question

New financial assets like an initial public offering or a seasoned equity offering are initially offered on the

Answer 1

I think it is C sorry if I am wrong

Answer 2

Answer:

C. primary market

Explanation:

The primary markets also known as financial asset issuance markets, are physical or virtual-electronic places where the collection of public funds by a company is made, through the issuance of new securities. That is, investors obtain newly created securities, which they acquire directly from the issuer (as opposed to secondary markets, in which previously issued securities that were held by other investors are traded).

However, purchases or sales of securities that were already in circulation, when made through a public offering, are also considered primary market operations.

The primary market is right because there are some financing claimants, the issuers of the securities, which require capital and who can try to obtain it through the issuance of securities. These values ​​may be capital (equities) or debt (fixed income).

In the first case, variable income assets are issued, which may pay dividends in the future to the owners of the shares, whose value will be negotiated in the secondary market, suffering variations over time, so, of some form, one could say that the remuneration will be variable and dependent on the result obtained by the company; both in the case that the holder of the title waits for dividends to be paid and in the case in which he decides to sell the title he owns in the secondary market.