Primary, Secondary and Debt Markets

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Which of the following best describes the primary market?

Market for trading existing securities

Market where new securities are issued and sold for the first time

Market for derivatives trading

Market for government bonds only

In the primary market, securities are issued through:

Stock exchange trades

Initial Public Offerings (IPO) and Follow-on Public Offerings (FPO)

Open market operations

Secondary trading

Which regulatory body oversees the primary market in India?

Reserve Bank of India (RBI)

Ministry of Finance

Securities and Exchange Board of India (SEBI)

Insurance Regulatory and Development Authority (IRDAI)

What is a Follow-on Public Offering (FPO)?

The initial issuance of shares by a private company

A secondary market transaction

An additional issuance of shares by an already listed company

A market for government securities

Which of the following represents raising capital through the private placement of securities?

Issuing securities to the public

Issuing securities to a select group of investors

Issuing shares through a stock exchange

Issuing government bonds