Which of the Following Is an Example of Both a Capital

question 64

Multiple Choice

Which of the following is an example of both a capital market and a primary market transaction?

• A)The U.S.Government sells 3-month Treasury Bills.
• B)Microsoft common stock owned by an individual investor is sold to another investor.
• C)Ford Motor Company sells a new issue of common stock to raise funds through a public offering.
• D)No transactions occur in both primary and capital markets at the same time.

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Definitions:

Communication

In a contract, an offer made to the offeree or the offeree’s agent.

Consumer Lease

is a contract where an individual leases goods for personal, family, or household purposes for a set period of time.

Personal Use

The use of a product, service, or property for an individual's private and non-commercial purposes.

Lessor

The party in a lease agreement who owns the property being leased out to another party, known as the lessee.