Question

One example of a primary market transaction would be the:
(A) sale of 5,000 shares of stock owned by a corporate CEO to his son.
(B) purchase by Theo of 5,000 shares of stock from his father.
(C) sale by Terry of 50,000 shares of stock to his brother.
(D) sale of 10,000 shares of treasury stock by its issuing corporation to Miquel.
(E) sale of 100 shares of stock by Maria to her best friend.

Answer 1

Answer:

(D) sale of 10,000 shares of treasury stock by its issuing corporation to Miquel.

Explanation:

Primary market transaction: In the primary market transaction, when securities are introduced in the business organization it is first given to the public or we can say initial public offer.  

The business organization sell its securities in terms of stocks, bonds to the public for the first time

In the given question, the option D would be the most appropriate option and give an example of primary market transactions.

Thus, all other options are incorrect.