Question

One example of a primary market transaction would be the: sale of 100 shares of stock by maria to her best friend. purchase by theo of 5,000 shares of stock from his father. sale of 1,000 shares of newly issued stock by alt company to miquel. sale by terry of 50,000 shares of stock to his brother. sale of 5,000 shares of stock owned by a corporate ceo to his son.

Answer 1

In the primary market investors buy securities directly from the company issuing them while the secondary market, investors trade securities among themselves, and the company with the security being traded does not participate in the transaction. Therefore, an example of a primary market transaction would be the sale of 1000 shares of newly issued stock by Alt Company to Miquel.