Which One of the Following Transactions Occurred in the Primary

question 1

Multiple Choice

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

• A)Maria gave 100 shares of Alto stock to her best friend.
• B)Gene purchased 300 shares of Alto stock from Ted.
• C)South Wind Products sold 1,000 shares of newly issued stock to Mike.
• D)Terry sold 3,000 shares of Uno stock to his brother.
• E)The president of Trecco, Inc. sold 500 shares of Trecco stock to his son.

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Definitions:

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, opposite to normal goods.

Normal Goods

Goods for which demand increases as the income of consumers increases, and vice versa, holding all other factors constant.

Laffer Effect

Refers to the economic theory proposing that there is an optimal tax rate that maximizes government revenue without hindering economic growth.

Labor Supply Curve

A graphical representation of the relationship between the quantity of labor supplied and the wage rate in an economy.