NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments
In the Indian securities market, the segment in which a company issues shares or debt to investors for the first time, so that the proceeds reach the issuer, is known as the:
This is the primary market. New securities are issued by the company directly to investors, for example through an IPO, and the money raised goes to the issuer. Secondary market trades happen only between investors, so the issuer receives no proceeds.
- APrimary marketCorrect
- BSecondary market
- CMoney market
- DDerivatives market
Explanation
In the primary market, securities are issued directly by the issuer and the funds raised go to the issuer. In the secondary market, existing securities are traded between investors and the issuer receives nothing from these trades.
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