If the company is issuing and trading new securities, such as stocks and bonds, which financial market is the company trading?a.Money marketb.Foreign exchange marketc.Capital marketd.Derivatives marketCLEAR MY CHOICE
Question
If the company is issuing and trading new securities, such as stocks and bonds, which financial market is the company trading?a.Money marketb.Foreign exchange marketc.Capital marketd.Derivatives marketCLEAR MY CHOICE
Solution
The company is trading in the Capital market. This market is where long-term securities such as stocks and bonds are bought and sold. These securities are typically issued by companies to raise capital for business expansion or other long-term plans. The capital market is further divided into the primary and secondary markets. The primary market is where new securities are issued and sold for the first time, while the secondary market is where previously issued securities are traded among investors.
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