Which one of the following transactions occurs in the primary market?
A)Repurchase of GHI stock from Tim by GHI
B)Tax-free gift of DEF stock to Heather by Jennifer
C)Sale of ABC stock by Fred Jones to Mary Smith
D)Initial sale of JKL stock by JKL to Jamie
E)Transfer of MNO stock from Tom to his son,Jon

Question

Quizplus · Accepted Answer

The primary market refers to the market where new securities are issued and sold to the public, therefore only an initial sale of JKL stock by JKL to Jamie occurs in the primary market. The other transactions involve the transfer or sale of existing securities and take place in the secondary market.

Which One of the Following Transactions Occurs in the Primary