Explain the Primary Differences Between the Primary Market and the Secondary

question 44

Essay

Explain the primary differences between the primary market and the secondary market. Which is needed (or both) in order for a corporation to raise capital for the firm by selling stock?

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Definitions:

Businesses Behavior

The patterns, practices, and ethical decisions made by companies in the pursuit of their objectives, including how they interact with their stakeholders, the environment, and the economy.

Standing to Sue

The legal right of an individual or entity to initiate a lawsuit, contingent upon having a sufficient connection to and harm from the law or action challenged.

Jurisdiction

The official power or authority to make legal decisions and judgments, often within a specified geographic area or over certain types of legal cases.

Supreme Court

The highest judicial court in the United States, consisting of nine Justices and having ultimate appellate jurisdiction.