A direct transfer of funds from savers to firms occurs when new securities are issued in the primary market.

Name: A direct transfer of funds from savers to firms occurs when new securities are issued in the primary market.
Brand: Quizplus
Rating: 4.7 (34 reviews)

Question

Quizplus · Accepted Answer

In the primary market, firms issue new securities directly to investors (savers), facilitating a direct transfer of funds from those looking to invest their money to those needing capital for expansion, projects, or other purposes.

A Direct Transfer of Funds from Savers to Firms Occurs