BANKING AFFAIRS

Detailed explanation-1: -Notes: In primary markets, property of shares which made it easy to sell newly issued security is considered as increased liquidity.

Detailed explanation-2: -In the primary market, securities are directly issued by companies to investors. Securities are issued either by an Initial Public Offer (IPO) or a Further Public Offer (FPO). An IPO is the process through which a company offers equity to investors and becomes a publicly-traded company.

Detailed explanation-3: -New securities are issued in a primary market. A debt-based or equity-based security is an asset that companies, governments, and other organisations use to obtain financing. Investment banks set the beginning price range for securities and oversee their sale to investors in the primary markets.

Detailed explanation-4: -Initial Public Offer (IPO) IPO is the fresh issue of the equity shares or convertible securities by an unlisted company for the first time.

Detailed explanation-5: -The entity that creates the securities for sale is known as the issuer, and those who buy them are, of course, investors. Generally, securities represent an investment and a means by which municipalities, companies, and other commercial enterprises can raise new capital.