Which One of the Following Transactions Occurs in the Primary

question 22

Multiple Choice

Which one of the following transactions occurs in the primary market?

• A)sale of stock by Shareholder A to Shareholder B
• B)gift of shares from a grandmother to her granddaughter
• C)sale of newly issued shares by the issuer to a shareholder
• D)sale of shares in the third market
• E)purchase of shares by a dealer from a shareholder

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Definitions:

Australian Dollar

The currency of Australia, which is also used by several other Pacific Island nations.

Exchange Rate

The value at which one currency can be exchanged for another currency, which can be determined by the market or specified by the government.

U.S. Dollars

The official currency of the United States, used as a standard monetary unit for transactions.

Japanese Yen

The official currency of Japan, abbreviated as JPY.