Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share. Hale sold the stock to an investment banker, who in turn sold it to individual and institutional investors. This is a secondary market transaction. True False

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24 December, 19:15

Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share. Hale sold the stock to an investment banker, who in turn sold it to individual and institutional investors. This is a secondary market transaction. True False

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Audrey · Answer 1

False

Explanation:

Secondary market is a market of financial instruments where, individuals and institutional investors already holding securities perform transactions of buying and selling those securities held by them, as for example: New York exchange.

Since in the given instance there is a sale of newly issued shares to investment banker and then through investment banker to individuals and institutional investors.

Thus it is not a transaction of secondary market.

The statement is false.