A Share of IBM Stock Is Purchased by an Individual

question 84

Multiple Choice

A share of IBM stock is purchased by an individual investor for $75 and later sold to another investor for $125.Who profits from this sale?

• A) IBM.
• B) The first investor.
• C) The second investor.
• D) Profit is split between IBM and the investor.

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Definitions:

Microeconomic Theory

The study of individual, household, and firm behaviors in decision making and allocation of resources.

Emphasis

A special importance, value, or prominence given to something.

Good

An item, material, or product that satisfies a want or need; can be tangible (physical) or intangible (like a service).

Perceived Fairness

The subjective judgment by individuals about the fairness or equity of something, often in economic transactions or distributive justice.