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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Definitions:

Pragmatics

The branch of linguistics dealing with the use of language in social contexts and the ways in which people convey meaning through communication.

Social Speech

Speech that is directed towards communicating with others and is typically observed in social contexts.

Egocentric Speech

Speech that is focussed on oneself and not adjusted for the listener's perspective, commonly observed in young children.

Fast Mapping

The process by which children learn a new word or concept after a brief encounter, demonstrating the rapid acquisition of language.