Q.Explain the following term/concept.
Primary market

The statement is True. The primary market is also called the new issue market because new securities are issued in it for the first time.

The primary market is that part of the capital market where a company raises fresh funds by issuing new shares and debentures directly to investors, for example through an IPO. As only fresh (new) securities are created and sold here, it is popularly called the new issue market. Existing securi …

The underlined words secondary market are wrong; the correct term is primary market. Corrected sentence: Companies sell fresh shares for the first time to the public in the primary market.

The capital market has two segments — the primary market and the secondary market.

• The primary market (new issue market) is where a company issues fresh securities to the public for the first time and raises new capital directly from investors, for example through an IPO. …