Which of the Following Is a Primary Market Transaction

question 29

Multiple Choice

Which of the following is a primary market transaction?

• A) You sell 200 shares of IBM stock on the TSX through your broker.
• B) IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker.
• C) One financial institution buys 200,000 shares of IBM share from another institution with help of an investment banker.
• D) You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of IBM shares on the TSX.

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Definitions:

Profitable Business

A company or enterprise that generates more revenue than it spends in costs, leading to a positive financial gain.

Consumer's Want

The desires or needs that influence a consumer's decision to purchase a product or service.

Small Business Owners

Individuals who own and operate businesses that are typically smaller in scale in terms of revenue, employees, and operations.

Business Running

The day-to-day operations and management of a business to ensure it functions efficiently and meets its goals.