Which One of the Following Is a Primary Market Transaction

question 11

Multiple Choice

Which one of the following is a primary market transaction?

• A) Sale of currently outstanding stock by a dealer to an individual investor
• B) Sale of a new share of stock to an individual investor
• C) Stock ownership transfer from one shareholder to another shareholder
• D) Gift of stock from one shareholder to another shareholder
• E) Gift of stock by a shareholder to a family member

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Definitions:

Internal User

An individual or group within an organization who uses financial and operational information for decision-making purposes, such as managers and employees.

Company Officers

Executives appointed by the board of directors responsible for managing the day-to-day operations and administration of a corporation.

Public Corporations

Entities that are owned by public shareholders. These corporations have shares that are listed and traded on public stock exchanges.

International Financial Reporting Standards

A set of global accounting standards developed by the International Accounting Standards Board (IASB) that outlines how financial transactions and other events should be reported in financial statements.