​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:

Initiating Structure

The degree to which a leader concentrates on group goal attainment.

Formal Designation

Refers to the official title or status bestowed upon a person, place, or thing through a conventional or recognized procedure.

Leadership Traits

Characteristics or qualities that are commonly found in effective leaders, such as confidence, integrity, and decisiveness.

Human Capital Challenge

The issues and difficulties an organization faces in acquiring, developing, and retaining skilled and talented employees.