n NISM Certifications
VII NISM Series VII
Medium

In the ______ market, the issuer directly offers securities to investors.

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Primary

    Correct answer

  2. B

    Secondary

  3. C

    Auction

  4. D

    Futures

Why this is the answer

The primary market allows issuers to raise capital directly from investors through IPOs, rights issues, FPOs, or private placements.

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