​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:

Independent Data Points

Data points that are not influenced by other variables in a dataset, important for statistical analysis and modeling.

Russian Stocks

Russian stocks are shares issued by companies based in Russia, traded on the Russian stock market or internationally, and are influenced by the country's economic and geopolitical developments.

Technical Analysis

The study of past market data, primarily price and volume, to forecast future price movements.

Security Prices

The monetary value assigned to a security (such as a stock, bond, or derivative) in a marketplace, determined by supply and demand dynamics.