An example of a primary market transaction is
A)a new issue of stock by Evergreen Solar.
B)a purchase of Microsoft stock on Nasdaq.
C)Target repurchasing some its own stock from an investor.
D)a sale of IBM stock on the NYSE.

Question

Quizplus · Accepted Answer

A new issue of stock by Evergreen Solar represents a primary market transaction because the company is issuing new shares of stock to raise capital for the first time. This differs from B, C, and D which are all examples of secondary market transactions where existing securities are bought and sold between investors.

An Example of a Primary Market Transaction Is