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Additional debt or equity instruments of a publicly traded company are issued in which market?

The primary market is where companies issue new securities such as shares or bonds for the first time to raise capital. This includes Initial Public Offerings (IPOs) and additional offerings. In contrast, the secondary market deals with trading existing securities... Read More

1 FINANCE MCQS

Additional debt or equity instruments of a publicly traded company are issued in which market?

  • Flow market
  • Primary market
  • Secondary market
  • Funding market
Correct Answer: B. Primary market

Detailed Explanation

The primary market is where companies issue new securities such as shares or bonds for the first time to raise capital. This includes Initial Public Offerings (IPOs) and additional offerings. In contrast, the secondary market deals with trading existing securities among investors, not issuing new ones.

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