The markets in which new securities are issued by the corporations to raise funds are called _____________?
Correct answer: D. primary markets
- A. proceeds marketsGet Study Guides
- B. secondary markets
- C. Gross markets
- D. primary markets
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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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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