The term 'Primary Market' in the capital market refers to:
A. Market for trading existing securities
B. Market for short-term funds only
C. Market for agricultural commodities
D. Market for issue of new securities
Answer: Option D
Solution (By JKSSB Mock Tests)
The primary market is the market where new securities are issued by companies or governments for the first time to raise capital. The secondary market deals with existing securities.
Explanation:
Original sin denotes the inability of most emerging-market and developing countries to borrow abroad in their own currencies, forcing them to issue foreign-currency debt and creating currency mismatches.
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