Which of the Following Is an Example of a Primary

question 45

Multiple Choice

Which of the following is an example of a primary market transaction?

• A)You sell 200 shares of IBM stock on the TSX through your broker.
• B)IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker.
• C)One financial institution buys 200,000 shares of IBM share from another institution with help of an investment banker.
• D)You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of IBM shares on the TSX.

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Definitions:

Economic Downturn

A period when the economy as a whole is in decline, marked by reduced industrial activity, increased unemployment, and lower consumer spending.

Pink Slip

Informal term for the notice given to an employee signifying termination of employment.

Thesis Statement

A concise statement or proposition that presents the main idea or argument of an essay, research paper, or dissertation, usually stated in one sentence.

New York City

A metropolis in the United States known for its significant cultural, financial, and media impacts globally.