Which One of the Following Is a Primary Market Transaction

question 101

Multiple Choice

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.

---

Definitions:

Profit Sharing

An incentive program that grants employees a share in the company's profits as part of their compensation.

Expected Profits

The anticipated financial gain from an investment or business activity, calculated by multiplying possible outcomes by their probabilities and summing the results.

Cost Function

Function relating cost of production to level of output and other variables that the firm can control.

Profit Sharing

A company policy or agreement that distributes a portion of its profits among employees, typically based on their performance or salary.