The markets in which new securities are issued by the corporations to raise funds are called _____________?
Correct answer: A. primary markets
- A. primary markets
- B. secondary markets
- C. Gross markets
- D. proceeds marketsGet Study Guides
Explanation
Primary markets are where corporations issue new securities directly to investors to raise funds. Secondary markets only trade securities that have already been issued.
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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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