You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction?

- This is an example of an exchange of physical assets.

- This is an example of a primary market transaction.

- This is an example of a direct transfer of capital.

- This is an example of a money market transaction.

- This is an example of a derivatives market transaction

Question

Amina Chen

Business

23 August, 06:55

You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction?

- This is an example of an exchange of physical assets.

- This is an example of a primary market transaction.

- This is an example of a direct transfer of capital.

- This is an example of a money market transaction.

- This is an example of a derivatives market transaction

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Answers (1)

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Caroline Wilson · Answer 1

Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization