Which of the following statements is CORRECT?

Select one:

A.

If a firm issues additional shares of common stock through an investment banker, this would be a secondary market transaction.

B.

If you purchased 100 shares of stock through a broker, this would be an example of a primary market transaction.

C.

The IPO market is a subset of the secondary market.

D.

Only institutions, and not individuals, can participate in derivatives market transactions.

E.

None of the above are correct.

If a company becomes more risky, the rate of return investors require will likely

Select one:

A.

Rise

B.

Fall

C.

Remain unchanged

D.

Not enough information to tell