Which of the Following Is a Primary Market Transaction

question 11

Multiple Choice

Which of the following is a primary market transaction?

• A) You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker.
• B) Johnson & Johnson issues 2, 000, 000 shares of new stock and sells them to the public through an investment banker.
• C) You buy 200 shares of Johnson & Johnson stock from your younger brother.You just give him cash and he gives you the stock¾the trade is not made through a broker.
• D) One financial institution buys 200, 000 shares of Johnson & Johnson stock from another institution.An investment banker arranges the transaction.
• E) You invest $10, 000 in a mutual fund, which then uses the money to buy $10, 000 of Johnson & Johnson shares on the NYSE.

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