Which market has the characteristic that financial assets cannot be resold?

The primary market is where financial assets are initially issued and sold directly to investors. This market is characterized by the creation and sale of new securities, such as stocks or bonds, which are being offered for the first time. Once these financial assets are sold in the primary market, the issuer receives the funds directly.

After initial sale in the primary market, any further buying and selling of these financial assets occurs in the secondary market. In the secondary market, existing securities are traded among investors, allowing for the reselling of the assets. This is where liquidity is provided, as it enables investors to sell their holdings to others.

Understanding this distinction is crucial. In the primary market, once a financial asset is issued, it is not designed for resale; rather, the focus is on the direct financial transaction between the issuer (like a corporation or government) and the buyer. Therefore, the characteristic of not being able to resell financial assets is inherent to the operations of the primary market.