Question

question 28
a corporation acquires new funds only when its securities are sold in the
secondary market by a stock exchange broker.
secondary market by a commercial bank.
secondary market by an investment bank.
primary market by an investment bank.

Explanation:

To determine the correct option, we analyze the primary and secondary markets. The primary market is where new securities are issued to raise new funds for the corporation. Investment banks facilitate the issuance of new securities in the primary market. In the secondary market, securities are traded between investors, and the corporation does not receive new funds. So, a corporation acquires new funds when its securities are sold in the primary market by an investment bank.

Answer:

D. primary market by an investment bank.