Which of the Following Is Considered a "Primary Market" Transaction

question 146

Multiple Choice

Which of the following is considered a "primary market" transaction?

• A) You buy shares in the public offering of a start-up company in the computer industry.
• B) Your mother sells you the shares she purchased in your uncle's latest business venture.
• C) You buy shares in Apple from an online brokerage
• D) You purchase call options issued by Ford Motor Company.
• E) You purchase warrants issued by General Motors Corporation.

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Definitions:

CCA Class

A category within the Capital Cost Allowance system in Canada for tax depreciation of assets.

Lease

A contractual arrangement whereby a lessor allows a lessee to use an asset in return for periodic payments for a specified period of time.

CCA Class

A category under the Canadian tax system that determines the depreciation rate for tax purposes on capital assets.

Net Advantage

The benefit or gain that results from a specific course of action, minus any associated costs.