Question
The _____ (i) is the segment of the financial market
where companies raise funds by issuing shares, while the _____ (ii) is where previously issued securities are traded among investors. The _____ (iii) is a short-term market where instruments like Treasury Bills and Commercial Papers are traded. Choose the correct set of words for (i), (ii), and (iii) from the options below:Solution
- Primary Market (i): Companies issue new shares and bonds to raise funds.
- Secondary Market (ii): Investors trade previously issued securities on stock exchanges.
- Money Market (iii): Facilitates short-term borrowing and lending (less than one year) through instruments like Treasury Bills and Commercial Papers.
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