On August 19, 2004 Google IPO offered 19,605,052 shares at a price of U.S. $85 per share, which were sold in an online auction in a bid to make the shares more widely available. Which of the following statements best describes why these are considered a primary market transaction?

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Quizplus · Accepted Answer

A primary market transaction involves the sale of securities by the issuing company directly to investors, which is exactly what happened in the case of Google's IPO. The transaction was between Google and investors, making it a primary market transaction. Choices B, C, and D are not accurate explanations of why this transaction is considered a primary market transaction.

On August 19, 2004 Google IPO Offered 19,605,052 Shares at a Price