What Happens in the Primary Market

question 146

Multiple Choice

What happens in the primary market?

• A) primary inputs like electricity are sold
• B) a corporate financial manager will resell previously issued shares of stock
• C) newly issued claims are sold by the borrowing firm to the initial buyer
• D) already issued claims are sold from one investor to another

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Definitions:

Company-oriented

Refers to the approach or policies tailored to prioritize the interests and goals of a company.

Bad Apple Effect

The phenomenon where the negative behavior of one individual can impact and deteriorate the entire group's behavior or performance.

Withhold Effort

Refers to deliberately holding back or not fully applying one's effort or capabilities in a task or situation.

Free Rider Effect

A situation where some individuals benefit from resources or services without contributing to the cost.