_____ deals in only new securities i.e., which were not available previously.*New Issue Market (NIM)Primary marketOriginationsecondary marketstock markets
Question
_____ deals in only new securities i.e., which were not available previously.*New Issue Market (NIM)Primary marketOriginationsecondary marketstock markets
Solution 1
The Primary Market, also known as the New Issue Market (NIM), deals only in new securities, i.e., securities that were not previously available. This is where companies, governments, and other groups go to obtain new securities for the purpose of raising funds. The origination process happens in this market before the securities are sold on the secondary market. The stock market includes both the primary and secondary market.
Solution 2
The Primary Market, also known as the New Issue Market (NIM), deals only in new securities, i.e., securities that were not previously available. This market is where companies, governments, and other groups go to obtain financing through debt-based or equity-based securities. This is different from the Secondary Market (also known as the Stock Market), where investors buy and sell securities that were already issued in the Primary Market. Origination is the process where a borrower applies for a new loan, and a lender processes that application. Origination is the multi-step process every individual must go through when obtaining a mortgage or loan.
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