In which type of market, new securities are traded?
Correct answer: A. Primary market
- A. Primary market
- B. Secondary market
- C. Tertiary market
- D. None of the given options
Explanation
Newly issued securities are sold in the primary market, where the issuing company or government receives the funds. Existing securities are traded among investors in the secondary market.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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