Question

Why primary market is also known as new issue market? Give one reason.

Answer 1

reason was that it improves market

Answer 2

The primary market is also recognized as an issue market because of the reason that company issue securities for the first time here.

• The primary market is where corporations issue new security, not formerly traded on any exchange.  
• The primary market may also be termed the New Issue Market or NIM. In the primary market, securities are rightly issued by businesses to investors.

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