Question

Ina Vestor has a brokerage account with one of the remaining large investment firms. This morning her broker called asking if she is interested in participating in an IPO. He went on to say that he could get her 200 shares for $23/share.

If Ina agrees to buy the IPO, the trade will take place in the _____________.

A. fair trade market
B. Boston market
C. primary market
D. secondary market

Answer 1

Answer: (C) Primary market

Step-by-step explanation:

The primary market is one of the type of capital market which helps in dealing with the various types of sales and the issuances directly with the investors in the market.

In the primary market, the organization initially selling various types of products and the services to the investor directly to the investors. This is also refers as the new issuing market place.

According to the question, Ina vestor is agree on buying the IPO then the trading is basically taking place in primary market.

Therefore, Option (C) is correct.