Which of the Following Statements Is CORRECT

question 6

Multiple Choice

Which of the following statements is CORRECT?

• A) If Apple issues additional shares of common stock through an investment banker, this would be a secondary market transaction.
• B) If you purchased 100 shares of Apple stock from your sister-in-law, this would be an example of a primary market transaction.
• C) The IPO market is a subset of the secondary market.
• D) Only institutions, and not individuals, can participate in derivatives market transactions.
• E) As they are generally defined, money market transactions involve debt securities with maturities of less than one year.