of the following is a primary market transaction? a. You sell 200 shares of IBM stock on the NYSE through your broker. b. IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker. c. You buy 200 shares of IBM stock from your brother. The trade is not made through a broker--you just give him cash and
of the following is a primary market transaction? a. You sell 200 shares of IBM stock on the NYSE through your broker. b. IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker. c. You buy 200 shares of IBM stock from your brother. The trade is not made through a broker--you just give him cash and
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Which of the following is a primary market transaction?
|
a. |
You sell 200 shares of IBM stock on the NYSE through your broker. |
|
b. |
IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker. |
|
c. |
You buy 200 shares of IBM stock from your brother. The trade is not made through a broker--you just give him cash and he gives you the stock. |
|
d. |
One financial institution buys 200,000 shares of IBM 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 IBM shares on the NYSE. |
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