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High Order Thinking Skills Why Primary Market is Also Known as New Issue Market? Give One Reason.

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Question

High Order Thinking Skills

Why primary market is also known as new issue market? Give one reason.

Short/Brief Note
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Solution

When an entrepreneur decides to issues securities like shares, debentures to the public for the first time for the purpose of obtaining capital funds such issues of securities are even referred as “new money issues”. Primary market is known as new issue market.

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Chapter 6: Resource Mobilization - Section B: Financial Markets [Page 246]

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CBSE Entrepreneurship [English] Class 12
Chapter 6 Resource Mobilization
Section B: Financial Markets | Q 5 | Page 246

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