Which one of the following is a primary market transaction?
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

Question

Quizplus · Accepted Answer

A primary market transaction involves the sale of new securities to the public, and option B is the only option that describes the sale of a new share of stock to an individual investor. Option A is a secondary market transaction, option C is a transfer between existing shareholders, and options D and E are not transactions that involve the sale or purchase of securities.

Which One of the Following Is a Primary Market Transaction