Question : Which of the following statement is incorrect?
Option 1: Primary market deals with issue of new securities by new companies.
Option 2: Primary market sells securities to the investors through an intermediary
Option 3: In the primary market both buying and selling of securities take place.
Option 4: None of the above
Correct Answer: In the primary market both buying and selling of securities take place.
Solution : Primary market deals with issue of new securities by new companies or new issues of securities by existing companies.In the primary market only buying of securities take place.
Hence, option C is correct.
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.
Question : Open market operations refer to the:
Question : What is the primary role of an underwriter in the capital market?
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