Where are new securities primarily sold?

The primary market is where new securities are issued and sold for the first time. When a company wants to raise capital, it creates and sells new security instruments directly to investors through initial public offerings (IPOs) or private placements. This market serves as an essential platform for companies to generate funds that can be used for various purposes, such as expanding operations or paying off debt.

In contrast, the secondary market involves the trading of previously issued securities among investors. This is where most of the trading occurs after the initial sale, allowing investors to buy and sell securities. The futures market pertains to contracts that agree to buy or sell a specific asset at a predetermined price in the future. The over-the-counter market is a decentralized market where securities that are not listed on formal exchanges are traded directly between parties.

Thus, the primary market is specifically designated for the issuance of new securities, making it the correct answer.