Question

an important financial institution that assists in the initial sale of securities in the primary market is the
stock exchange.
commercial bank.
brokerage house.
investment bank.

Explanation:

To solve this, we analyze each option:

• A stock exchange is a secondary market where existing securities are traded, not for initial sales.
• A commercial bank's main role is deposit - lending and other retail banking services, not assisting in initial security sales.
• A brokerage house mainly facilitates trading in the secondary market for clients.
• An investment bank is responsible for underwriting and assisting in the initial public offering (IPO) or initial sale of securities in the primary market.

Answer:

D. investment bank