If you purchase stock from a firm conducting a seasoned equity offering, this transaction will take
place in ____ markets and ____ markets.

a. capital;
secondary
b. money;
primary
c. capital;
primary
d. money;
secondary

Question

If you purchase stock from a firm conducting a seasoned equity offering, this transaction will take
place in ____ markets and ____ markets.

a. capital;
secondary
b. money;
primary
c. capital;
primary
d. money;
secondary

anonymous · Answer

Capital market is a place for securities and debt. Govt. and enterprises raise fund fron captial market. And IPOs are offered in primary market. So if one buys share using IPO, he buys from primary market. So i think our answer is c. Please correct me if i am wrong.

anonymous · Answer

C. I would agree.  A seasoned offering is new shares being sold directly from the company to raise capital.  So it involves the Capital market and new shares issued by the company for the first time are offered in the primary market.