Ask Question
BusinessBusiness
4 October, 04:51

Which one of the following is a primary market transaction?

a. sale of currently outstanding stock by a dealer to an individual investor

b. sale of a new share of stock to an individual investor

c. stock ownership transfer from one shareholder to another shareholder

d. gift of stock from one shareholder to another shareholder

e. gift of stock by a shareholder to a family memberber

+2
Answers (2)
  1. 4 October, 04:55
    0
    The correct answer is letter "B": sale of a new share of stock to an individual investor.

    Explanation:

    Corporations and governments fund their activities by selling stocks or bonds that are bought directly by individual investors from the issuing company or government entity. This is considered the primary market which gives investors their first opportunity to buy new securities.
  2. 4 October, 04:58
    0
    b. sale of a new share of stock to an individual investor

    Explanation:

    The primary market is where new stocks are created. it is the platform for investors to purchase stocks of an entity that goes public for the first time.

    Hence the initial public offer otherwise known as IPO is a good example of a primary market transaction.

    As such sale of a new share of stock to an individual investor is a primary market transaction
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which one of the following is a primary market transaction? a. sale of currently outstanding stock by a dealer to an individual investor b. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $8,638. FICA tax for Social Security is 6.2% on the first $128,400 of earnings each calendar year and the FICA tax for Medicare is 1.
Answers (1)
What does the size of the dividend per share of stock depend on?
Answers (1)
In the United States, nonprofits employ about one in hundred workers, accounting for less paid workers than the entire construction industry and less than the finance, insurance, and real-estate sectors combined. True / False.
Answers (1)
Hitzu Co. sold a copier (that costs $7,500) for $15,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales.
Answers (1)
Where do insurance companies get the money to pay for losses suffered by their customers?
Answers (1)
New Questions in Business
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability policies: Only cover the first $50.
Answers (1)
In the resource-based view of the firm, examples of tangible resources include: Select one: a. outstanding customer service, innovativeness of products, and reputation b.
Answers (1)
Off-Line Co. has 9,000 units in beginning finished goods. The sales budget shows expected sales to be 36,000 units. If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?
Answers (1)
g resh bought 1,000 shares of Ibis Corporation stock for $5,600 on January 15, 2017. On December 31, 2019, she sold all 1,000 shares of her Ibis stock for $4,800.
Answers (1)
The last stage of the new-product development process is
Answers (1)
Home » Business » Which one of the following is a primary market transaction? a. sale of currently outstanding stock by a dealer to an individual investor b. sale of a new share of stock to an individual investor c.
Sign Up Forgot Password?