Question

Which of the following statements is not true with regard to the primary market?

• A. It is also known as the old issues market.
• B. It deals with new securities being issued for the first time.
• C. It facilitates the transfer of investible funds from savers to entrepreneurs.

Answer 1

The correct option is A

It is also known as the old issues market.

Answer (a) It is also known as the old issues market.

Explanation: The primary market is the place where securities are made, while the secondary market is the place where those securities are exchanged by financial backers and investors. In the primary market, organisations offer new stocks and securities to the general society for the first time, for example, issuing shares with an initial public offering (IPO).