When investors buy securities directly from the company issuing them, then it is termed as

Answer: [C] Primary Market

C is the correct answer. In case of the primary market, investors buy securities directly from the company issuing them, while in the secondary market, investor’s trade securities among themselves. Thus, Primary market is for raising the Equity capital or share capital, which is the owners' interest on the assets of the enterprise after deducting all its liabilities. This mechanism of buying and selling shares through stock exchange is known as the secondary markets.
 

This question is a part of GKToday's Integrated IAS General Studies Module