Answer:
The correct answer is E. Initial public offering.
Explanation:
An Initial Public Offering (IPO) is an equity offering where a <u>private company</u> or '<u>issuer</u>' decides to <em>go public for the first time</em>. This is a big step for companies to raise capital through public investors, get access to better and more credit and further grow a company. To go through with an IPO, a company must meet the requirements of the Securities and Exchange Comission (SEC).
The process is made with the help of one or more <u>investment banks</u> that act as <u>underwriters</u>. Underwriters take care of the offering from the beginning to the end of the IPO by preparing documentation, providing proposals on selling price, amount of shares & timeframe for the market offering, marketing campaigns and going through the issuing process.
Answer:
Jim Henry bought 500 shares of I.B.M. through a broker.
- SECONDARY MARKET TRANSACTION
Peggy White bought 500 shares of Apple from another investor.
- SECONDARY MARKET TRANSACTION
New York Life Insurance Co. bought 500,000 shares of Tioga Corp when the company issued the stock.
- PRIMARY MARKET TRANSACTION
Primary market transactions that place when an investor purchases securities at the time the corporation or entity issued them, e.g. if you purchased Amazon's stocks at their IPO (or any other time new stocks were issued), it was a primary market transaction. But if you purchased Amazon's stocks at any other time, it is a secondary market transaction. Almost all the transactions carried out everyday are secondary market transactions.
