Markets in which new securities are issued by corporations to raise funds are called

A. primary markets

B. secondary markets

C. Gross markets

D. proceeds markets

Answer: Option A

Solution(By Examveda Team)

Markets in which new securities are issued by corporations to raise funds are called primary markets. The primary market is where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an example of a primary market.