What is the primary function of the primary market?

The primary market serves as the key platform for issuing new securities, where corporations and governments can raise capital by selling stocks and bonds directly to investors for the first time. This process is essential for funding new projects, expansions, or refinancing existing debts. The primary market distinguishes itself from the secondary market, where these previously issued securities are later traded among investors. Therefore, choice B accurately reflects this crucial function of the primary market, which is fundamentally about creating new securities to meet the funding needs of issuers.

The other options do not correctly describe the primary market:

• The option regarding previously issued securities pertains to the secondary market, not the primary market.
• The statement about facilitating broker transactions relates more broadly to brokerage services and market operations instead of specifically defining the primary market's role.
• The mention of trading volume does not pertain to the primary market directly, as it is more a feature of the overall market environment and can apply to both primary and secondary markets.

Thus, B is the correct choice as it encapsulates the essence of what the primary market is designed for.