​Which of the Following Statements Is CORRECT

question 27

Multiple Choice

​Which of the following statements is CORRECT?

• A) ​If you purchase 100 shares of Disney stock from your brother-in-law,this is an example of a primary market transaction.
• B) ​If Disney issues additional shares of common stock through an investment banker,this would be a secondary market transaction.
• C) ​The NYSE is an example of an over-the-counter market.
• D) ​Only institutions,and not individuals,can engage in derivative market transactions.
• E) ​As they are generally defined,money market transactions involve debt securities with maturities of less than one year.

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Definitions:

Statutory Law

The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law).

Secondary Source

Information that has been compiled, summarized, or quoted from primary sources, often used in academic and historical research.

U.S. Constitution

The foundational legal document of the United States that outlines the framework of the government and its powers.

Independent Regulatory Agencies

These are federal agencies created by an act of Congress that are independent of the executive departments. They regulate important sectors of the economy, making and enforcing rules to protect public interest.