Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share.Hale sold the stock to an investment banker, who in turn sold it to individual and institutional investors.This is a primary market transaction.

Question

​Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share.Hale sold the stock to an investment banker, who in turn sold it to individual and institutional investors.This is a primary market transaction.

Quizplus · Accepted Answer

This is a primary market transaction because the shares are being sold by the company directly to investors for the first time.

​Recently, Hale Corporation Announced the Sale of 2

Recently, Hale Corporation Announced the Sale of 2