SIE practice questioneasyPrimary Market
In which market do issuers sell newly created securities to investors for the first time?
- AFourth market
- BThird market
- CPrimary market✓ Correct answer
- DSecondary market
Explanation
Why C — Primary market
The primary market is where new securities are issued and sold to investors for the first time, such as during an IPO or new bond offering. The issuer receives the proceeds from the sale. The secondary market is where previously issued securities trade between investors. The third market involves exchange-listed securities traded OTC, and the fourth market is direct institution-to-institution trading.
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