The Primary Market Is Defined as the Market

question 16

Multiple Choice

The primary market is defined as the market:

• A) Wherein the original sale of securities by the issuer to the general public occurs.
• B) Where stocks and bonds are exchanged between dealers.
• C) Mechanism by which a sale of a financial instrument between two shareholders is conducted.
• D) Operated by brokers for the benefit of shareholders.
• E) Commonly known as the over-the-counter market.

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Definitions:

Channel

A medium through which a product or service is distributed to its end-users, such as a retail store or online platform.

Resellers

Entities or individuals that purchase goods or services to sell them again rather than consuming or using them.

Trade Discounts

Reductions in price given by sellers to buyers in the business-to-business market.

Manufacturer

An entity engaged in the process of producing goods for sale by using raw materials, labor, and machinery.