English

Primary market is also known as new issue market.

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Question

Primary market is also known as new issue market.

Options

  • True

  • False

MCQ
True or False
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Solution

This statement is True.

Explanation:

In Primary market, companies sell their shares, Debentures, etc. for the first time to raise fresh capital. It exclusively deals with the issue of new securities, i.e. securities that are issued to investors for the very first time. Hence this market is also known as New Issues Market.

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Chapter 11: Financial Market - Exercises [Page 168]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 11 Financial Market
Exercises | Q 1 D) 4. | Page 168

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