Is an initial public offering an example of a primary or secondary market transaction Explain
belongs to book: FUNDAMENTALS OF FINANCIAL MANAGEMENT|Eugene F.Brigham, Joel F. Houston|12th Edition| Chapter number:1| Question number:5
All Answers
total answers (1)
Accounting
A primary market is the market in which corporations raise capital by issuing new securities. An initial public offering is a stock issue in which privately held firms go public. Therefore, an IPO would be an example of a primary market transaction.
need an explanation for this answer? contact us directly to get an explanation for this answer