The __________ market is also known as the new issues market, which deals with new securities being issued for the first time.

capital

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money

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primary

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secondary

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Solution

The correct option is C primary
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.

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Similar questions

___are known as a new issue market as it is the market for new long-term capital securities issued by the company.

Discuss in detail the type of market which deals in previously issued securities.

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