Which One of the Following Parties Can Sell Shares of ABC

question 6

Multiple Choice

Which one of the following parties can sell shares of ABC stock in the primary market?

• A)ABC company
• B)Any corporation, other than the ABC company
• C)Institutional shareholder
• D)Private individual shareholder
• E)Any of these

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Definitions:

Factoring

Factoring is a financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Capital Investment Analysis

The process of evaluating the potential returns of an investment in fixed assets or long-term projects versus its costs.

Risk-Return Trade-Off

The principle that potential return rises with an increase in risk.

Leveraged Buyout Analysis

A financial transaction analysis in which a company is purchased using a significant amount of borrowed money to meet the cost of acquisition.