Answered

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Which one of the following is a primary market transaction?
A. a dealer selling shares of stock to an individual investor
B. a dealer buying newly-issued shares of stock from a corporation
C. an individual investor selling shares of stock to another individual
D. a bank selling shares of a medical firm to an individual
E. a sole proprietor buying shares of stock from an individual investor

Sagot :

jepessoa

Answer:

B. a dealer buying newly-issued shares of stock from a corporation

Explanation:

Primary market transactions are IPOs or any other issuance of securities, e.g. bonds. A security is traded only once in a primary market, since after the security is issued for the first time, any other transection will be made on the secondary market. There is no physical difference between a primary or secondary market, e.g. the NYSE makes both primary and secondary transactions.

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