Question

You recently sold 200 shares of Disney stock, and the transfer was made through a broker. This is an example of: a. An over-the-counter market transaction. b. A money market transaction. c. A secondary market transaction. d. A primary market transaction. e. A futures market transaction.

Answer 1

Answer:

The correct answer is letter "C": A secondary market transaction.

Explanation:

A secondary market refers to all transactions of securities that happen after their initial offering which is usually handled by investment banks. The New York Stock Exchange (NYSE) and the NASDAQ (National Association of Securities Dealers Automated Quotation) are examples of secondary market exchanges. The secondary market drives the price of securities according to massive independent but interconnected trades carried out through investment institutions or brokers.

Answer 2

Answer:

  C. A secondary market transaction.

Explanation:

  In a secondary market, the investors buy and sell securities they own. It is typically known as the stock market although in the primary market stocks are sold too. But the difference is that the primary market is for companies and governments.

  I hope this answer helps you.