If you buy shares of Coca-Cola on the primary market:
A)Coca-Cola receives the money because the company has issued new shares.
B)you buy the shares from another investor who decided to sell the shares.
C)you buy the shares from the New York Stock Exchange.
D)you buy the shares from the Federal Reserve.

Question

Quizplus · Accepted Answer

When shares are bought on the primary market, the company that issued the shares (in this case, Coca-Cola) receives the money because they are selling newly issued shares directly to investors.

If You Buy Shares of Coca-Cola on the Primary Market