Q170
Type of financial markets in which corporations issues new funds to raise funds is classified as
A.
flow market
B.
primary markets
AnswerC.
secondary markets
D.
funding markets
Answer: Option B
Solution
Answer: Option B
Solution:
Type of financial markets in which corporations issues new funds to raise funds is 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.