a. Only institutions, and not individuals, can participate in derivatives market transactions. b. If you purchased 100 shares of

Question

3 years ago

15

a. Only institutions, and not individuals, can participate in derivatives market transactions. b. If you purchased 100 shares of

Apple stock from your sister-in-law, this would be an example of a primary market transaction. c. The IPO market is a subset of the secondary market. d. If Apple issues additional shares of common stock through an investment banker, this would be a secondary market transaction. e. As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Business

1 answer:

Marina CMI [18] · Answer 1 · 2022-01-17T23:56:34+03:00

Answer:

e. As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Explanation:

Statement E, As they are generally defined, money market transactions involve debt securities with maturities of less than one year is true.

Statement A is not true. It is primary market transaction.

Statement B is not true. Individuals can also participate in derivatives market transactions.

Statement C is not true. The IPO market is a subset of the primary market.

Statement D is not true. It is a direct transfer of capital.