Exchanges of capital stock and bonds between a corporation and investors take place in
A)secondary markets
B)primary markets
C)stock exchanges
D)tertiary markets

Question

Quizplus · Accepted Answer

Exchanges of capital stock and bonds between a corporation and investors take place in primary markets. Primary markets are where new securities are issued and sold for the first time, with the proceeds going to the issuer. Secondary markets are where existing securities are bought and sold by investors, with the proceeds going to other investors rather than the issuer. Stock exchanges are physical or virtual marketplaces where securities are traded. Tertiary markets are not a recognized category of financial markets.

Exchanges of Capital Stock and Bonds Between a Corporation and Investors