Question
Which of the following statements about the primary
market is correct? Â Â Â Â 1. It is a market for trading existing securities. Â Â Â Â 2. It involves the issuance of new securities. Â Â Â Â 3. It includes IPOs and FPOs.Solution
The primary market involves the issuance of new securities and includes IPOs and FPOs. Trading of existing securities occurs in the secondary market. Â
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