When Internet coupon site Groupon sold stock to the public for the first time,funds were being raised in a ________ market,and when those newly issued shares are resold to other buyers,the sales take place in a ________ market.

Question

Quizplus · Accepted Answer

When Groupon sold stock to the public for the first time, it was a primary market transaction as the shares were being sold for the first time to raise funds. However, when those newly issued shares are resold to other buyers, it takes place in a secondary market. Therefore, the sale of shares in this scenario is taking place in a secondary market, which is the case with choice B, primary for the first transaction and secondary for subsequent sales.

When Internet Coupon Site Groupon Sold Stock to the Public