ECONOMICS
FINANCIAL MARKETS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money market
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Primary market
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Stock exchange
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Secondary market
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Detailed explanation-1: -New securities are issued (created) and sold to investors for the first time in the primary market. Thereafter, investors trade these securities on the secondary market. The primary market is also known as the new issues market. The secondary market is what we commonly think of as the stock market or stock exchange.
Detailed explanation-2: -The primary market may also be called the New Issue Market (NIM). 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).
Detailed explanation-3: -Primary market is also known as New Issue Market as in this market only new companies can issue their securities and buyers have only buying option. Q. The market is also known as the new issues market, which deals with new securities being issued for the first time.
Detailed explanation-4: -The primary market is where securities are created, while the secondary market is where those securities are traded by investors. In the primary market, companies sell new stocks and bonds to the public for the first time, such as with an initial public offering (IPO).
Detailed explanation-5: -The types of primary market issues include initial public offerings (IPOs), Follow-on Public Offerings (FPOs), Rights issues, Bonus issues, Private placements, Preferential allotments, and Qualified Institutional Placements.