Which One of the Following Is a Primary Market Transaction

question 16

Multiple Choice

Which one of the following is a primary market transaction?

• A) a dealer selling shares of stock to an individual investor
• B) a dealer buying newly issued shares of stock from a corporation
• C) an individual investor selling shares of stock to another individual
• D) a bank selling shares of a medical firm to an individual

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Definitions:

Income Statement

A financial report that shows a company's revenue, expenses, and profits over a specific period of time.

Profit Margin

A financial metric used to assess a company's profitability by dividing net income by revenue.

Net Income

is the amount of money that remains after all expenses, taxes, and costs have been subtracted from a company's total revenue, also known as the bottom line.

Full Capacity Sales

The maximum potential sales revenue a firm can achieve when operating at total capacity.