Q175
Additional debt instruments or equity instruments of publicly traded firm are included in markets classified as
A.
flow market
B.
primary markets
AnswerC.
secondary markets
D.
funding markets
Answer: Option B
Solution
Answer: Option B
Solution:
Additional debt instruments or equity instruments of publicly traded firm are included in markets classified as primary markets. The primary market is where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an example of a primary market.