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4 December, 08:35

Newly issued securities are sold to investors in which markets?

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Answers (2)
  1. 4 December, 08:56
    0
    Newly issue securities are sold to investors in the primary market

    Explanation:

    The new issue of securities are handled by investment bankers in the primary securities markets. Most times companies issue their debut securities in form of initial public offer (IPO).

    The IPO serves as a vehicle through which they can reach out to potential investors for the time.

    Such issues are normally sold to the issuing houses, investment and merchant banks alike, for a price lower than the issue price in order that the issuing house could record a percentage gain on the sale of the securities and also to guarantee the sale of the entire securities offered.
  2. 4 December, 08:57
    0
    Primary Market

    Explanation:

    A Share Is a unit of ownership

    This is the market for first issue, the market for second issue, that is, reissuing shares that have been previously issued.

    Primary markets are facilitated or controlled by underwriting groups consisting of investment banks that set a beginning price range for a given security and complete its sale to investors.
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