Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A) If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.
• B) If you purchased 100 shares of Disney stock from your brother-in- law, this would be an example of a primary market transaction.
• C) The IPO market is a subset of the secondary market.
• D) Only institutions, and not individuals, can participate in derivatives market transactions.
• E) As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

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Definitions:

Businesses

Entities engaged in commercial, industrial, or professional activities with the goal of generating profits.

Product Market

A marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Footballs

Spherical objects used in the game of football (soccer) or oval-shaped objects used in American football, both designed for being kicked, thrown, or carried to score points.

Labor

The physical and mental effort used in the production of goods and services.