In which market are newly issued securities soldfor the first time?

When securities are issued for the first time, they are sold in the primary market. This market is where companies and governments can raise capital by selling new stocks or bonds directly to investors. The process typically involves an initial public offering (IPO) when shares are launched to the public for the first time. In the primary market, the issuer receives the proceeds from the sale, which can then be used for various purposes, such as expanding operations or funding projects.

The other markets mentioned serve different roles. The secondary market, for instance, is where previously issued securities are traded among investors, and the issuer does not receive any funds from these transactions. The over-the-counter market refers to trading that occurs directly between two parties, often for securities that are not listed on major exchanges. The forex market, on the other hand, deals specifically with the trading of foreign currencies, rather than securities. Understanding these distinctions clarifies why the primary market is essential for initial securities offerings.