An individual who places an order to buy 1000 shares of IBM stock:
A) Is involved in a private placement of securities.
B) Is most likely involved in an IPO.
C) Is most likely participating in the secondary market.
D) Must have hired a dealer to perform this transaction.
E) Has to be listed as a private dealer.

Question

Quizplus · Accepted Answer

This individual is participating in the secondary market, where previously issued securities are bought and sold among investors. Private placements and IPOs involve the initial sale of securities to investors, and hiring a dealer or being listed as a private dealer is not a requirement for buying shares in the secondary market.

An Individual Who Places an Order to Buy 1000 Shares