Which of the following statements is CORRECT?

a. While the two frequently perform similar functions, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise large blocks of capital from investors.
b. An example of a primary market transaction would be your uncle transferring 100 shares of Walmart stock to you as a birthday gift.
c. The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically.
d. Capital market instruments include both long-term debt and common stocks.
e.If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary market transaction.

Capital market is financial market where long term instruments are traded. These instruments include bond, common stocks and debenture. With this background, statement in option D is correct.

Option A is not correct because reverse is the case: investment banks raise large blocks of capital from investors while commercial banks specialize in lending money.

Option B and E are not correct, too. Transaction under them are examples of a secondary market transaction.

Option C is wrong, as well. NYSE has a physical location where trading activities happen.

So option D is the only correct statement because capital market instruments are long-term debt and common stocks.