Question

Which one of the following parties can sell shares of ABC stock in the primary market? A. ABC company B. Any corporation, other than the ABC company C. Institutional shareholder D. Private individual shareholder E. Any of the above

Answer 1

Answer:

The correct answer is letter "A": ABC company.

Explanation:

Corporations and governments finance their activities by issuing stock or bonds which are purchased by the public directly from the issuing corporation or government entity. This is considered the primary market, which provides investors their first chance to purchase new security.