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    Question

    Which market is where new securities, including stocks and bonds, are issued and sold for the first time, often involving activities like Initial Public Offerings (IPOs)?

    A Money market Correct Answer Incorrect Answer
    B Derivatives market Correct Answer Incorrect Answer
    C Foreign exchange market Correct Answer Incorrect Answer
    D Primary market Correct Answer Incorrect Answer
    E OTC market Correct Answer Incorrect Answer

    Solution

    The primary market is where new securities, such as stocks and bonds, are issued and sold  for the first time. Initial public offerings (IPOs) are a common activity in the primary market, allowing companies to raise capital by selling their shares to the public for the first time.

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