Which one of the following is a primary market transaction?
A) a dealer selling shares of stock to an individual investor
B) a dealer buying newly issued shares of stock from a corporation
C) an individual investor selling shares of stock to another individual
D) a bank selling shares of a medical firm to an individual

Question

Quizplus · Accepted Answer

A primary market transaction involves the issuance of new securities, and in this case, a dealer is buying newly issued shares of stock from a corporation, making it a primary market transaction. The other options all involve the sale of existing shares, which would be considered secondary market transactions.

Which One of the Following Is a Primary Market Transaction