You Recently Sold to Your Brother 200 Shares of Disney

question 35

Multiple Choice

You recently sold to your brother 200 shares of Disney stock; the transfer was made through a broker, and the trade occurred on the TSX. This is an example of which of the following?

• A) a futures market transaction
• B) a primary market transaction
• C) a secondary market transaction
• D) a money market transaction

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Definitions:

CIF

"Cost, Insurance, and Freight," a term used in international shipping agreements where the seller is responsible for the transportation costs, insurance, and freight charges to the designated port.

Insurance

A contract in which the insured party makes payments to the insurer in exchange for the insurer’s promise to make payment or transfer goods to another party in the event of injury or destruction to the insured party’s property or life.

Shipping Term

Conditions that outline the delivery arrangements and responsibilities between buyers and sellers, often specified in contracts.

FAS

A term in international commerce, standing for "Free Alongside Ship," indicating that the seller is responsible for the delivery of goods to a named port alongside a vessel.