Financial Awareness - Risk, Stability & Emerging Finance
What is the primary purpose of the Primary Market in the capital market system?
What is the primary purpose of the Primary Market in the capital market system?
easy Q1 of 15
Step-by-Step Solution
Step 1: Understand the role of the Primary Market
The Primary Market is the segment where companies issue new securities to raise capital for the first time.Step 2: Analyze options
Trading of existing securities happens in the Secondary Market, regulation is done by SEBI, and loans are provided by banks, not the Primary Market.Final Answer:
To enable companies to raise fresh capital by issuing new securities → Option BQuick Check:
Primary Market = fresh capital raising ✅
Quick Trick: Primary Market = First-time issue of securities.
Common Mistakes:
- Confusing Primary Market with Secondary Market functions.
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