Which of the following statements regarding the primary market and the secondary market are CORRECT?
I. The primary market is where new securities are issued and sold to investors for the first time, often through Initial Public Offerings (IPOs).
II. The secondary market is where previously issued securities are traded among investors, such as through stock exchanges.
III. In the primary market, the company issuing the securities does not receive any funds from the sale, while in the secondary market, the funds are transferred between investors without any direct benefit to the issuing company.
1.I and II only
2.I and III only
3.II and III only
4.I, II, and III
5.None of the above
Correct Answer : 1
Solution :
The primary market is where new securities are issued and sold to investors for the first time, typically through Initial Public Offerings (IPOs). This statement is correct.
The secondary market is where previously issued securities are traded among investors, such as on stock exchanges. This statement is correct.
In the primary market, the company issuing the securities does indeed receive the funds raised from the sale. This statement is incorrect.
RBI Grade B Previous Year Papers
Attempt RBI Grade B Phase 1 PYPs, get detailed solutions
RBI Grade B Phase 1 Mock Test
Attempt RBI Grade B Phase 1 Mocks in Latest Pattern
Create a free Oliveboard account to access all PYQs with solutions & video explanations
RBI Phase I PYP Test Series
RBI Grade B Phase 1 PYP 2024 - 8th September Shift 1
2002002 Hours
RBI Grade B Phase 1 PYP 2024 - 8th September Shift 2
2002002 Hours
RBI Grade B Phase 1 PYP 2023 - 9th July Shift 1
2002002 Hours
RBI Grade B Phase 1 PYP 2023 - 9th July Shift 2
2002002 Hours
RBI Grade B Phase 1 PYP 2022 - 28th May Shift 1
2002002 Hours
RBI Grade B Phase 1 PYP 2022 - 28th May Shift 2
2002002 Hours
RBI Grade B Phase 1 PYP - 6th March Shift 1
2002002 Hours
RBI Grade B Phase 1 PYP - 6th March Shift 2
2002002 Hours
RBI Grade B Phase 1 PYP 2019 - 9th November Shift 1
Study Notes
Category
