Which of the Following Transactions Are Taking Place in a Primary

question 54

Multiple Choice

Which of the following transactions are taking place in a primary market?

• A)A superannuation fund buys 10 000 shares in the ASX.
• B)A company issues $20 million of ordinary shares.
• C)An investment bank provides advice to a company about raising capital.
• D)All of the given answers.

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, often used under conditions of uncertainty.

Decision-Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Overconfidence

This is a bias in behavioral finance where investors believe they have superior knowledge or capabilities, leading to overly optimistic assessments of their investment decisions.

Information Precision

The degree of accuracy and reliability of information, especially in the context of financial markets or decision-making processes.