Which One of the Following Statements Concerning the Primary Market

question 40

Multiple Choice

Which one of the following statements concerning the primary market is correct?

• A) A transaction in the primary market is between two private stockholders.
• B) The first public sale of a company's stock in the primary market is called a seasoned new issue.
• C) The first public sale of a company's stock is called an IPO.
• D) A rights offering is a direct sale of stock to an institution that participates in the primary market.

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