n NISM Certifications
XV NISM Series XV
Medium

Which of the following is considered a primary market activity?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Buying shares from existing shareholders

  2. Issuance of new equity by a company

    Correct answer

  3. C

    Trading of shares on stock exchanges

  4. D

    Derivative trading

Why this is the answer

The primary market involves new securities issuance, whereas secondary market involves trading existing shares.

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