IBM Creates and Sells Additional Stock to the Investment Banker

question 49

Multiple Choice

IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public through its mutual funds. This transaction is an example of a(n)

• A)primary market transaction.
• B)asset transformation by Morgan Stanley.
• C)money market transaction.
• D)foreign exchange transaction.
• E)forward transaction.

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Definitions:

Unrepresentative

Describes a sample or subset that does not accurately reflect the characteristics of the larger group or population it is meant to represent.

Announcer's Voice

The distinct, clear, and often authoritative vocal tone used by professionals in broadcasting and public speaking to engage and inform listeners.

Friend's Voice

A familiar auditory stimulus that can elicit emotional and social responses due to recognition and personal association.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information.