The ________ is the market of first sale in which companies first sell their authorized shares to the public
A) primary market
B) secondary market
C) both primary and secondary markets
D) Nasdaq market
Answer: A
Explanation: A) There are two major markets for the sale of stock, the primary market and the secondary market. The primary market is the market of first sale, in which companies first sell their authorized shares to the public. The secondary market is the after-sale market of the existing outstanding shares in which individual or institutional owners of stocks sell their shares to other investors.
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