Which one of the following transactions occurs in the primary market?
A)sale of stock by Shareholder A to Shareholder B
B)gift of shares from a grandmother to her granddaughter
C)sale of newly issued shares by the issuer to a shareholder
D)sale of shares in the third market
E)purchase of shares by a dealer from a shareholder

Question

Quizplus · Accepted Answer

The primary market is where newly issued securities are sold by the issuer to investors. Therefore, the sale of newly issued shares by the issuer to a shareholder is the only transaction that occurs in the primary market.

Which One of the Following Transactions Occurs in the Primary