Actions and Activities Are Discouraged with

question 133

Multiple Choice

Actions and activities are discouraged with

• A) positive incentives.
• B) negative incentives.
• C) direct incentives.
• D) indirect incentives.
• E) unintended consequences.

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Definitions:

Primary Market Transaction

Occurs when new securities are sold for the first time to investors, directly impacting the issuing company's capital.

Issuing Corporation

The entity that offers securities for sale to investors, typically through the process of a public offering.

Secondary Market

A venue where investors buy and sell securities they already own, such as the stock market, separate from the primary market where securities are first issued.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation, a creditor relationship with a governmental body or a corporation, or rights to ownership as represented by an option.