Question : Which market is highlighted in the given statement?
Statement: Investors can only buy securities
Option 1: Primary market
Option 2: Secondary market
Option 3: Capital market
Option 4: Money market
Answer (1)
9th Jan, 2024
Correct Answer: Primary market
Solution : In the primary market investors can only buy the securities but in the secondary market both buying and selling can take place. Primary market refers to that market in which security are sold for the first time for collecting long term capital. Therefore the primary market is also called new issue market. Through the medium of this market both the newly established companies as well as existing companies collect capital.
Hence, option A is correct.
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