Which One of the Following Transactions Occurs in the Primary

question 47

Multiple Choice

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

• A)purchase of 500 shares of GE stock from a current shareholder
• B)gift of 100 shares of stock to a charitable organization
• C)gift of 200 shares of stock by a mother to her daughter
• D)a purchase of newly issued stock from AT&T
• E)IBM's purchase of GE stock

---

Definitions:

Trade Discount

A deduction from the list price of goods agreed upon by the seller and the buyer, typically offered by suppliers to retailers.

Trade Discount

A reduction granted by a supplier on the list or catalog prices of goods or services, often based on the volume of transactions.

Trade Discount

A reduction in the retail price of goods, granted by the wholesaler or manufacturer to the retailer for the purpose of resale.

Trade Discount

A reduction from the list price granted by a seller to a buyer, typically for bulk purchases or to business customers in a particular industry.