IFMP Mutual Fund Distributors Certification (MFDC), Pakistan Practice Questions - IFMP Mutual Fund Distributors Certification (MFDC), Pakistan Exam

In a primary market transaction, investors typically:

Buy newly issued securities from the issuer (or via underwriters) so proceeds go to the issuer Buy shares only from other investors on the secondary exchange with no issuer proceeds Redeem mutual fund units solely with other unit holders in a peer-to-peer market Borrow exclusively from the central bank for overnight liquidity

Correct Answer:

Buy newly issued securities from the issuer (or via underwriters) so proceeds go to the issuer

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