You purchase a share of Facebook stock from a friend who purchased the stock 1 year ago.Your purchase of the stock represents a transaction in the primary financial market.

Question

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The purchase of the stock from a friend who purchased it 1 year ago represents a transaction in the secondary financial market, not the primary financial market. The primary market refers to the first-time issuance of a security, while the secondary market is the market in which securities are bought and sold after they have already been issued.

You Purchase a Share of Facebook Stock from a Friend