41. *All new issues being offered for public sale are registered with
A. SEBI
B. new issue market
C. maloney act of 1936
D. securities investor protection act of 1970
Answers
Answer:
new issue market is the right answer
NEW ISSUE MARKET
All new issues being offered for public sale are registered with (B) new issue market
FEATURES OF NEW ISSUE MARKET:
* The primary market is often referred to as the new issue market. Securities are sold for the first time in this market, i.e., fresh securities are issued by the corporation.
* Because companies go directly to investors in the primary capital market and utilize these money to invest in buildings, plants, machines, and other assets, the primary capital market directly contributes to capital creation.
* The primary market excludes money in the form of loans from financial institutions because when a financial institution issues a loan, it is transforming private capital into public capital, which is referred to as going public. Equity shares, debentures, bonds, preference shares, and other innovative securities are common securities issued on the main market.