SIE practice questionmediumPrimary vs. Secondary Market
An investor purchases newly-issued shares directly from the issuer. In which market does this transaction occur?
- AFourth market
- BSecondary market
- CThird market
- DPrimary market✓ Correct answer
Explanation
Why D — Primary market
Primary market is where issuers sell new securities. Secondary markets are for trading among investors; third and fourth markets are for institutional trades.
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