Question

Which one of the following is a primary market transaction? Select one: a. Sale of currently outstanding stock by a dealer to an individual investor b. Sale of a new share of stock to an individual investor c. Stock ownership transfer from one shareholder to another shareholder d. Gift of stock from one shareholder to another shareholder e. Gift of stock by a shareholder to a family member

Answer 1

Answer:

B: Sale of a new share of stock to an individual investor.

Explanation:

Primary market transaction is one in which newly created securities such as stocks and bonds are sold to investors for the first time.

In secondary market transaction, already issued securities in primary market are traded.