What Happens in the Primary Market

question 167

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:

Inspiration

The process of being mentally stimulated to do or feel something, especially something creative.

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place, crucial for the respiratory process.

Gas Exchange

The biological process through which gases (such as oxygen and carbon dioxide) move between the environment and the bloodstream, typically through the lungs or gills.

Bronchioles

Small passages in the lungs that lead from the bronchi to the alveoli, facilitating the movement of air in and out of the lungs.