MANAGEMENT

Detailed explanation-1: -Solution: A primary market is where new securities are sold for the first time. IPO stands for initial public offering.

Detailed explanation-2: -Initial public offering (IPO) is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to increase, but can also be done by large privately-owned companies looking to become publicly traded.

Detailed explanation-3: -In a primary market, securities are created for the first time for investors to purchase. New securities are issued in this market through a stock exchange, enabling the government as well as companies to raise capital. For a transaction taking place in this market, there are three entities involved.

Detailed explanation-4: -The secondary market is where securities are traded after the company has sold its offering on the primary market. It is also referred to as the stock market.