Multiple choice

New capital issue is placed in

  1. Secondary market

  2. Grey market

  3. Primary market

  4. Black market

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

New capital issues (IPOs, FPOs) are offered in the primary market where companies directly raise funds from investors. The secondary market trades existing securities, grey market deals with unofficial trading before listing, and black market refers to illegal transactions. Primary market is where capital formation occurs.