Which of the Following Is a Primary Market Transaction in the Capital

question 56

Multiple Choice

Which of the following is a primary market transaction in the capital market?

• A) Purchase of a new issue of IBM
• B) Purchase of an existing issue of Intel
• C) Purchase of a new 30-day treasury bill
• D) Both a & b

---

Definitions:

Zero-balance Account

A checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an exact amount to cover checks presented.

Float Management

Strategies employed by companies to manage the time between issuing and cashing payments to optimize available cash flow.

NPV

NPV is a calculation that determines the expected financial profitability of a given investment or project by assessing the difference between the current value of all incoming and outgoing cash flows.

Positive NPV Projects

Projects with a net present value greater than zero, indicating they are expected to generate profit over their lifetime.