​Which of the Following Is a Primary Market Transaction

question 31

Multiple Choice

​Which of the following is a primary market transaction?

• A) ​You sell 200 shares of IBM stock on the NYSE through your broker.
• B) ​You buy 200 shares of IBM stock from your brother.The trade is not made through a broker;you just give him cash and he gives you the stock.
• C) ​IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker.
• D) ​One financial institution buys 200,000 shares of IBM stock from another institution.An investment banker arranges the transaction.
• E) ​IBM sells 2,000,000 shares of treasury stock to its employees when they exercise options that were granted in prior years.

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Definitions:

Selective Attention

The process of focusing on a particular object in the environment for a certain period of time, while simultaneously ignoring irrelevant information.

Mental Life

The range of psychological processes that occur in the mind, including thoughts, emotions, and unconscious conflicts.

Information Processing

The methods by which humans take in, use, and store information, often compared to the operations of a computer.

Biological Rhythm

Natural cycles of physical, emotional, or mental activity in living organisms, often synchronized with environmental factors like light and dark cycles.