A sale of a security in the primary markets is the only time the issuing company receives the proceeds from the sale.

Question

Quizplus · Accepted Answer

In the primary market, the issuing company is the seller of the security and receives the proceeds from the sale. In contrast, in the secondary market, securities are bought and sold among investors, and the proceeds go to the sellers, rather than the issuing company. Therefore, the statement is true.

A Sale of a Security in the Primary Markets Is