Which One of the Following Transactions Occurs in the Primary

question 22

Multiple Choice

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

• A)sale of stock by Shareholder A to Shareholder B
• B)gift of shares from a grandmother to her granddaughter
• C)sale of newly issued shares by the issuer to a shareholder
• D)sale of shares in the third market
• E)purchase of shares by a dealer from a shareholder

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Definitions:

Foreign Exchange Gain

Profit derived from the appreciation of one currency against another in the context of foreign exchange trading or transactions.

Foreign Exchange Loss

A loss resulting from the devaluation of the home currency against a foreign currency in transactions.

Forward Exchange Contract

A financial agreement to exchange a set amount of currencies at a specified rate on a predetermined future date.