You recently sold 100 shares of Microsoft stock to your brother at a family reunion.At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates.Which of the following best describes this transaction?
A) This is an example of a direct transfer of capital.
B) This is an example of a primary market transaction.
C) This is an example of an exchange of physical assets.
D) This is an example of a money market transaction.
E) This is an example of a derivative market transaction.

Question

Quizplus · Accepted Answer

This is not a primary market transaction as it did not involve the initial sale of Microsoft stock to the public. It is not an exchange of physical assets as there was no physical asset being exchanged. It is not a money market transaction as it did not involve short-term debt securities. It is not a derivative market transaction as it did not involve any financial instruments that derive their value from an underlying asset. This is simply a direct transfer of capital, where ownership of the stock was transferred from one party to another in exchange for payment.

You Recently Sold 100 Shares of Microsoft Stock to Your