​Which of the Following Statements Is CORRECT

question 27

Multiple Choice

​Which of the following statements is CORRECT?

• A) ​If you purchase 100 shares of Disney stock from your brother-in-law,this is an example of a primary market transaction.
• B) ​If Disney issues additional shares of common stock through an investment banker,this would be a secondary market transaction.
• C) ​The NYSE is an example of an over-the-counter market.
• D) ​Only institutions,and not individuals,can engage in derivative market transactions.
• E) ​As they are generally defined,money market transactions involve debt securities with maturities of less than one year.

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Definitions:

Word Recognition Method

The word recognition method is a technique used in reading instruction that focuses on the ability to recognize written words quickly and efficiently.

Transitivity

The principle that if A is greater than B in a property and B is greater than C, then A is greater than C.

Abstract Concepts

Ideas or thoughts that do not have a physical or concrete existence, but are understood through mental representation and cognitive processes.

Hypothetical Thinking

The ability to think about situations, propositions, or problems that are not based on immediate reality or current experiences.