Question
Which of the following statements is correct? Group of answer choices If your uncle in New York sold 100 shares of Microsoft through his broker
Which of the following statements is correct?
Group of answer choices
If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary market transaction.
Google issues 2,000,000 shares of new stock and sells them to the public through an investment banker. This is an example of a primary market transaction.
An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift.
If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.
If an investor sells shares of stock through a broker, then this would be a primary market transaction.
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