Financial Awareness - Risk, Stability & Emerging Finance
The primary market in the capital market is known for:
The primary market in the capital market is known for:
easy Q2 of 15
Step-by-Step Solution
Step 1: Understand the difference between primary and secondary markets
The primary market deals with the issuance of new securities, while the secondary market involves trading of existing securities.Step 2: Analyze the options
Issuance of new securities to the public is the function of the primary market. Trading existing securities is secondary market activity. Regulating stock exchanges is done by SEBI, and providing loans is a banking function.Final Answer:
Issuance of new securities to the public → Option DQuick Check:
Primary market = issuance of new securities ✅
Quick Trick: Mnemonic: Primary Issues New, Secondary Trades Old.
Common Mistakes:
- Confusing primary market with secondary market functions.
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