Investment bankers operate in the______________.

primary market
secondary market
A and B both
None of above

The correct answer is: C. A and B both

Investment bankers operate in both the primary and secondary markets.

The primary market is where new securities are issued and sold to investors for the first time. Investment bankers help companies raise capital by underwriting new securities offerings, such as initial public offerings (IPOs) and secondary offerings.

The secondary market is where existing securities are bought and sold between investors. Investment bankers provide liquidity to the secondary market by acting as market makers, which means they buy and sell securities on behalf of their clients.

Here is a brief explanation of each option:

  • A. Primary market
    The primary market is where new securities are issued and sold to investors for the first time. Investment bankers help companies raise capital by underwriting new securities offerings, such as initial public offerings (IPOs) and secondary offerings.

  • B. Secondary market
    The secondary market is where existing securities are bought and sold between investors. Investment bankers provide liquidity to the secondary market by acting as market makers, which means they buy and sell securities on behalf of their clients.

  • C. A and B both
    Investment bankers operate in both the primary and secondary markets.

  • D. None of above
    This option is incorrect because investment bankers do operate in the primary and secondary markets.