Business Studies

Financial Markets

Easy

Which of the following is NOT true about "Primary Market"?

It is also known as New Issue market

Both buying and selling of securities can take place.

Securities are sold by the company to the investors directly.

There is no fixed geographical location of Primary Makret.

✅ Correct Option: 2

In the primary (new issue) market, companies sell fresh securities directly to investors, so only buying by investors takes place; securities cannot be sold back or traded there. Buying and selling of existing securities happens in the secondary market. Hence statement 2 is not true.

2026: 13 May Shift 1

The following is not an advantage of the Electronic Trading System:

2026: 21 May Shift 2

The following is not a method of floating new issues in the primary market:

2026: 13 May Shift 1

The government and the stock exchange were rather helpless in addressing the investors' problems because of the lack of proper penal provisions in the existing legislation, so it was decided to set up a regulatory body known as:

2023: 11 June Shift 3

From the following identify the short term, negotiable, self liquidating instrument used to finance the working capital requirements of business firms.

2026: 21 May Shift 1

_______________ is a mandatory document for opening DEMAT account.

2026: 29 May Shift 2

The following was not the objective of setting up the Bombay Stock Exchange:

Which of the following is NOT true about "Primary Market"?

Solution

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