Question

The investors in Primary market are ______.

• A. banks
• B. financial institutions
• C. insurance companies
• D. all of the above

Answer 1

The correct option is D all of the above

The investors in Primary market are banks, financial institutions and insurance companies. The primary market is also known as the new issues market, which deals with new securities being issued for the first time. Primary market directly contributes in capital formation because in primary market company goes directly to investors and utilize the funds for investment purpose. Primary market does not include finance in the form of loan from financial institutions.