Which One of the Following Statements Concerning the Primary Market

question 4

Multiple Choice

Which one of the following statements concerning the primary market is correct?

• A) A rights offering is a direct sale of stock to an institution that participates in the primary market.
• B) The first public sale of a company's stock is called an IPO.
• C) A transaction in the primary market is between two private shareholders.
• D) The first public sale of a company's stock in the primary market is called a seasoned new issue.

---

Definitions:

Marketers

Professionals who are involved in the promotion and selling of products or services, including market research and advertising strategies.

Flight Attendant

An airline employee responsible for ensuring the safety, security, and comfort of passengers aboard flights.

Commercial Aircraft

A type of aircraft designed and used for transporting passengers and cargo for business purposes.

Liable

Legally responsible or obligated.