Ace the Canadian Securities Course 2026 - Rock the CSC Practice Exam!

A primary offering refers specifically to the process where new securities are issued for the first time to investors, which typically occurs when a company aims to raise capital for various purposes such as expansion, paying off debt, or other investments.

In this context, issuing new securities directly connects to the concept of a primary market, where the capital raised goes directly to the company, unlike the secondary market where existing shares are traded among investors. This distinguishes the primary offering from other actions such as trading existing shares or buying back shares from investors, which do not directly impact the company's capital raising efforts.

Therefore, the correct answer highlights the essential function of a primary offering as a mechanism for companies to secure new funds from investors through the sale of new securities.