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MCQs · Q9

Q.The segment of the capital market in which a company issues shares to the general public for the very first time, resulting in the company getting listed on a stock exchange for the first time, is called:
(A) Secondary Market
(B) Rights Issue
(C) Initial Public Offer (IPO), in the Primary Market
(D) Call Money Market

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The Primary Market (New Issue Market) is where new securities are issued for the first time, with funds flowing directly to the issuing company. When a company issues shares to the public and gets listed for the very first time, this specific method of public issue is called an Initial Public Offer (IPO).

Option-by-option analysis:

  • (A) Incorrect — the Secondary Market deals in ALREADY-issued securities being resold among investors, not a company's first-ever issue. …
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