Home
/
Business
/
27. Initial Public Offerings (IPOs) occur in the: A. Secondary market B. Primary market C. Derivatives market D. Foreign exchange market

Question

27. Initial Public Offerings (IPOs) occur in the:
A. Secondary market
B. Primary market
C. Derivatives market
D. Foreign exchange market

27. Initial Public Offerings (IPOs) occur in the: A. Secondary market B. Primary market C. Derivatives market D. Foreign exchange market

expert verifiedVerification of experts

Answer

4.2165 Voting
avatar
JonahProfessional · Tutor for 6 years

Answer

The correct answer is 'B'.

Explain

## Step 1<br />The question is asking in which type of market Initial Public Offerings (IPOs) occur.<br /><br />## Step 2<br />An IPO is when a company sells shares of stock to the public for the first time. This is typically done to raise capital for the company.<br /><br />## Step 3<br />The term "secondary market" refers to a market where investors buy and sell securities they already own. This does not fit the context of IPOs, as IPOs involve the initial sale of securities.<br /><br />## Step 4<br />The term "derivatives market" refers to a market where derivatives, such as futures and options, are traded. This does not fit the context of IPOs, as IPOs involve the sale of actual shares of stock.<br /><br />## Step 5<br />The term "foreign exchange market" refers to a market where currencies are traded. This does not fit the context of IPOs, as IPOs involve the sale of shares of stock, not currencies.<br /><br />## Step 6<br />The term "primary market" fits the context of the sentence because a primary market is where new securities, such as stocks and bonds, are issued and where the security is bought directly from the issuer, which often are companies that just made initial public offerings (IPOs).
Click to rate:

Hot Questions

More x