Question

Which of the following are examples of a primary market transaction? a. A company issues new common stock. b. An investor asks his brother to purchase 1,000 shares of Boeing common stock. c. A company issues new bonds. d. Statements a and c are correct. e. Statements a and b are correct.

Answer 1

Answer:

d. Statements a and c are correct

Explanation:

The primary market is the market where for the first time the new securities such as shares, stocks, bonds, etc. are being sold to the general public or we can refer initial public offer. The initial public offer is an example of the primary market

On the other side, the secondary market is that market where the shares are bought or sold through the investors after the sale to the public at large.