​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:

Bounded Rationality

Bounded Rationality is a concept suggesting that the cognitive limitations of the mind and the finite amount of time available to make decisions affect the rationality of individuals.

Limited Information

The condition of having incomplete data or knowledge concerning a particular topic or situation.

Problem Space

Problem space refers to the concept in cognitive science and problem-solving research that represents all possible states and actions that could be taken to solve a problem, from the initial state to the goal state.

Algorithms

A set of rules or procedures to be followed in calculations or problem-solving operations, especially by a computer.