What Is a Primary Market

question 56

Multiple Choice

What is a primary market?

• A)a market where primary inputs like steel are sold
• B)a market where you can sell any bonds you own as a private investor
• C)a market where newly issued claims are sold to initial buyers by the borrowing firm
• D)a market where you can sell any stocks you own as a private investor

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Definitions:

LIFO

LIFO, or Last In, First Out, is an inventory valuation method where the last items to be added to inventory are assumed to be the first ones sold.

Ending Inventory

The total value of a company's merchandise, goods, and products held at the end of an accounting period.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.

Gross Profit

The difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments.