Question

The ________ market is where securities are initially issued and the ________ market is where pre-owned securities (not new issues) are traded.Select one:a. primary; secondaryb. money; capitalc. secondary; primaryd. primary; money

Answer 1

Answer: Option(a) is correct.

Explanation:

Correct option: Primary; secondary

Primary market is a market in which new stocks and securities are issued for the first time. Firms are selling their shares and bonds for the first time to the public. For example; IPO (Initial Public Offering).

Secondary market is a market in which buying and selling of already owned securities takes place. In this type of market investors trade with each other rather than with issuing firm.