Which of the following statements is CORRECT?
A) If you purchase 100 shares of Disney stock from your brother-in-law,this is an example of a primary market transaction.
B) If Disney issues additional shares of common stock through an investment banker,this would be a secondary market transaction.
C) The NYSE is an example of an over-the-counter market.
D) Only institutions,and not individuals,can engage in derivative market transactions.
E) As they are generally defined,money market transactions involve debt securities with maturities of less than one year.

Question

​Which of the following statements is CORRECT?
A) ​If you purchase 100 shares of Disney stock from your brother-in-law,this is an example of a primary market transaction.
B) ​If Disney issues additional shares of common stock through an investment banker,this would be a secondary market transaction.
C) ​The NYSE is an example of an over-the-counter market.
D) ​Only institutions,and not individuals,can engage in derivative market transactions.
E) ​As they are generally defined,money market transactions involve debt securities with maturities of less than one year.

Quizplus · Accepted Answer

This statement is correct as money market transactions involve short-term debt securities with maturities of less than one year.

A is incorrect as purchasing shares from a brother-in-law would be an example of an off-market transaction. 
B is incorrect as issuing additional shares through an investment banker would be a primary market transaction. 
C is incorrect as the NYSE is a formal, centralized exchange, not an over-the-counter market. 
D is incorrect as both institutions and individuals can engage in derivative market transactions.

​Which of the Following Statements Is CORRECT

Which of the Following Statements Is CORRECT