Which of the following statement is true about Primary market 1 Primary market is the place where th...........

Finance (Phase -I & II) Valuation of Securities

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Which of the following statement is true about Primary market ?

1. Primary market is the place where the shares are issued for the first time.

2. The process of the Initial Public Offering or IPO and the debentures are controlled at the primary stockmarket.

only 1

only 2

Both 1 and 2

Neither 1 nor 2

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Explanation:

Primarily there are two types of stock markets – the primary market and the secondary market. This is true for the Indian stock markets as well. Basically the primary market is the place where the shares are issued for the first time. So when a company is getting listed for the first time at the stock exchange and issuing shares – this process is undertaken at the primary market. That means the process of the Initial Public Offering or IPO and the debentures are controlled at the primary stockmarket.