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Question

This is where a company gets listed in a stock exchange. Identify the platform _______________.

A
Secondary Market
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B
Standard Market
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C
Primary Market
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D
Money Market
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Solution

The correct option is B Primary Market
The company gets listed in a stock exchange on the platform known as the primary market. 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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