The Primary Market Includes

question 97

Multiple Choice

The primary market includes:

• A) The purchase and sale of shares of stock between two shareholders.
• B) The sale of stock by a shareholder in the open market.
• C) The sale of stock by a shareholder in an auction market.
• D) The sale of new securities by a corporation for the first time to the general public.
• E) The sale of stock by a shareholder in the OTC market.

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Definitions:

Financial Commitments

Obligations to pay money in the future, which can include debts, loans, or other financial responsibilities one has agreed to.

Direct Investment

An investment in the form of a controlling ownership in a business in one country by an entity based in another country, typically by buying the company or establishing new operations.

Global Market

The international exchange of goods, services, and capital, encompassing the full extent of activities and operations across countries.

Direct Investment

A form of investment where a company or individual acquires a controlling interest in a foreign business entity, often by purchasing its assets or shares.