Question

Investors who currently own shares but want to sell must transact in the _________________ markets.

tertiary

secondary

brokered

primary

If a company wants a more cost-effective way to sell shares to the markets, they might consider using a(n) _________________.

IPO

Reg D Private Placement

auction market

shelf registration

Answer 1

1) secondary market

2 private placement

because

The primary market is where securities are created, while the secondary market is where those securities are traded by investors. In the primary market, companies sell new stocks and bonds to the public for the first time, such as with an initial public offering (IPO)

Except for private placement other options envolve marketing and advertising cost which can be huge