The type of financial markets in which the corporations issues new funds to raise funds is classified as ____________?
Correct answer: B. primary markets
- A. flow market
- B. primary markets
- C. secondary markets
- D. funding markets
Explanation
Primary markets are where corporations issue new shares or bonds and receive fresh funds from investors. Secondary markets only facilitate trading of 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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