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Question
New capital issue is placed in
Options:
A .  Black market
B .  Grey market
C .  Secondary market
D .  Primary market
Answer: Option D
Answer: (d)
The primary market is that part of the capital markets that deals with the issuance of new securities.
Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is the market for new long term equity capital.
The primary market is the market where the securities are sold for the first time. Therefore it is also called the new issue market (NIM).

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