Which one of the following transactions occurs in the primary market?
A)purchase of 500 shares of GE stock from a current shareholder
B)gift of 100 shares of stock to a charitable organization
C)gift of 200 shares of stock by a mother to her daughter
D)a purchase of newly issued stock from AT&T
E)IBM's purchase of GE stock

Question

Quizplus · Accepted Answer

The primary market is where newly issued securities are sold for the first time. A purchase of newly issued stock from AT&T would therefore occur in the primary market. Choices A, B, C, and E all involve transactions with existing shares of stock, which would occur in the secondary market.

Which One of the Following Transactions Occurs in the Primary