Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Which of the following is also known as New Issue Market?

Options:

Primary market

Secondary Market

Capital market

None of the above

Correct Answer:

Primary market

Explanation:

The correct answer is Option 1: Primary market

The primary market earned this name because it is the specific segment of the capital market where securities—such as stocks, bonds, or debentures—are created and issued to investors for the first time.

PRIMARY MARKET : The primary market is also known as the new issues market. It deals with new securities being issued for the first time. The essential function of a primary market is to facilitate the transfer of investible funds from savers to entrepreneurs seeking to establish new enterprises or to expand existing ones through the issue of securities for the first time.