Question

Adea Company is planning to make an initial public offering of stocks worth $1,000,000. In which financial market will it sell its stocks? primary market secondary market money market capital market

Answer 1

primary market, as an IPO

Answer 2

The correct answer is a "primary market".

A primary market is the type of capital market where corporations and national and local public entities get financing through the sale of new stocks and other kinds of securities, when they are just issued. Once the first sale has been accomplished, further sales will be conducted in the secondary markets (another type of capital markets).