Explanation:
When issuers sell securities to investors, the transaction occurs in the primary market, where funds flow directly to the issuer from the purchaser. The secondary market involves trading between investors, not issuers. Therefore, option A is correct, while options B and C describe scenarios that do not apply to the initial sale of securities by issuers.
When issuers sell securities to investors, which of the following statements is most accurate?
A
The securities are traded in the primary market.
B
The securities are traded in the secondary market.
C
Funds flow between the primary and secondary markets.
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