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VMariaS [17]
4 years ago
13

Which one of the following is a primary market transaction? Group of answer choices Sale of currently outstanding stock by a dea

ler to an individual investor Sale of a new share of stock to an individual investor Gift of stock from one shareholder to another shareholder Stock ownership transfer from one shareholder to another shareholder
Business
2 answers:
Ostrovityanka [42]4 years ago
8 0

Answer:

The correct answer is the option B: Sale of a new share of stock to an individual investor.

Explanation:

To begin with, the <em>primary market</em> is where the securities are created and therefore that it is in this type of market in where the firms sell for the first time the new shares that they have in stock to the public that are looking to demand it and that is why this is the moment that the investors have to contribute for the first time to the capital of the company. In conclussion, a primary market transaction is the sale of a new share of stock to an individual investor.

trapecia [35]4 years ago
6 0

Answer:

sale of a new share of stock to an individual investor

Explanation:

Securities are created in the primary market. With an IPO which stands for initial public offering, new stocks are sold to the public by companies on a first time basis.

The sale of a new share of stock in the question is an example of a primary market transaction.

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Which one of the following is a primary market transaction?
aleksandr82 [10.1K]

Answer:

B. a dealer buying newly-issued shares of stock from a corporation

Explanation:

Primary market transactions are IPOs or any other issuance of securities, e.g. bonds. A security is traded only once in a primary market, since after the security is issued for the first time, any other transection will be made on the secondary market. There is no physical difference between a primary or secondary market, e.g. the NYSE makes both primary and secondary transactions.

6 0
3 years ago
Future Corporation has a single product; the product selling price is $100 and variable costs are $60. The company’s fixed expen
Thepotemich [5.8K]

Answer:

$25,000

Explanation:

The computation of the  break-even point in sales dollars is shown below:

Break even point = (Fixed expenses) ÷ (Profit volume Ratio)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $100 - $60

= $40

And, Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

So, the Profit volume ratio = ($40) ÷ ($100) × 100 = 40%

And, the fixed expenses is $10,000

Now put these values to the above formula  

So, the value would equal to  

= ($10,000) ÷ (40%)  

= $25,000

5 0
3 years ago
_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doo
Allisa [31]

Answer: Diversification

Explanation: Diversification strategy involves widening the scope of the organization across different products and market sector. Furthermore, it is used to expand firms operations and productivity by adding markets, products, services, or stages of production to the existing business and the main aim of diversification is to minimize the risk by investing in range of products. It helps in reducing the market volatility.

8 0
3 years ago
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The payoff matrix that follows shows the profit (
juin [17]

Answer:

bybokpppgd<em><u>мјуичжжччќпиѕгвч9уфцчјхгфсааЗззззР</u></em>

3 0
4 years ago
A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three wareho
morpeh [17]

Answer:

25,768

Explanation:

The square root rule of inventory states that the average inventory level can be calculated by multiplying the total inventory by the square root of the number of future warehouses divided by the number of the current warehouses.It's purpose is to estimate the effect of risk pooling.

Workings

X2 =( X1)* ( N2/N1)

Inventory per warehouse = 4000

No of Warehouse = 5

To inventory = 4000*5 = 20,0000

New no of Ware house = 3

20000(√5/3)=

20000*1.29=25,768

6 0
3 years ago
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