Question

A primary financial market is: A. Located only in New York, London, and Tokyo but can handle transactions anywhere in the world B. One that can only deal in the highest investment grade securities C. A market where U.S. Treasury bonds are traded D. One where the borrower obtains funds directly from the lender for newly issued securities

Answer 1

D. One where the borrower obtains funds directly from the lender for newly issued securities

Step-by-step explanation:

A primary financial market refers to the market where a firm or government issues a financial security for the first time, and investors can purchase those securities directly from the issuer. It is usually mediated by investment banks.

After the primary market is exhausted, further trading occurs in the secondary market, for example: the stock exchange.