Question : Which of the following statement is correct?
Statement 1:Primary Market promotes capital formation directly.
Statement 2: Only buying of securities takes place in the Primary Market.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Answer (1)
17th Jan, 2024
Correct Answer: Both are true
Solution : Primary market is concerned with the new issues there for primary market is also known as new issue market. Through the medium of this market both the newly established companies as well as existing companies collect capital. In this market the flows of funds is from savers to borrowers.
Hence, option A is correct.
Comments (0)
