Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share. Hale sold the stock to an investment banker, which in turn sold it to individual and institutional investors. This is a primary market transaction.

Question

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This is a primary market transaction because the shares were newly issued and sold directly by the company to the investment banker, who then sold them to individual and institutional investors.

Recently, Hale Corporation Announced the Sale of 2