Explain How Securities Are Issued in the Primary Market and Traded

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The Answer is ​The primary market is where corporations obtain financial capital by selling newly issued securities. There are two different ways securities can be sold in primary markets. In public offerings, the securities are sold to the general public. In private placements, the securities are sold to a select group of accredited investors who meet specific requirements set by the Securities and Exchange Commission. Most firms hire a financial intermediary known as an investment bank to help them sell securities in the primary market. Secondary markets are where previously issued securities are traded. The corporations that issue stocks and bonds do not receive any funds from sales on the secondary market. The two major types of secondary markets are securities exchanges and the over-the-counter-market. Exchanges only list stocks of corporations that satisfy their listing requirements and pay listing fees. The stocks of corporations not listed on an exchange are sold on the over-the-counter-market through a network of securities dealers.

Explain How Securities Are Issued in the Primary Market and Traded

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Explain How Securities Are Issued in the Primary Market and Traded

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Correct Answer:VerifiedShow Answer

Correct Answer:
Verified