Which statement best describes primary market communications?

• A. They discuss the trading of existing municipal securities.
• B. They relate to new issues, including terms and offering documents.
• C. They are exclusively prepared by the rating agencies.
• D. They cover ongoing governance disclosures after issuance.

Answer: (B)

The main concept here is what primary market communications cover. They are the materials and messages used when a new municipal issue is being sold, detailing the terms, features, and risk factors of the issue and the offering documents investors rely on, such as the official statement and related disclosures prepared for the sale. This is exactly about new issues and how they are presented to investors entering the market.

That’s why this statement is the best fit: primary market communications pertain to new issues, including the terms and offering documents that describe the deal. They are not about trading existing securities—that’s the secondary market. They are not restricted to materials from rating agencies, since rating agencies may assess the issue but do not prepare the core offering documents. And they aren’t about ongoing governance disclosures after issuance, which fall under continuing disclosures rather than primary market communications.