Which one of the following transactions occurred in the primary market?
A)Maria gave 100 shares of Alto stock to her best friend.
B)Gene purchased 300 shares of Alto stock from Ted.
C)South Wind Products sold 1,000 shares of newly issued stock to Mike.
D)Terry sold 3,000 shares of Uno stock to his brother.
E)The president of Trecco, Inc. sold 500 shares of Trecco stock to his son.

Question

Quizplus · Accepted Answer

The sale of newly issued stock by South Wind Products to Mike indicates that the transaction occurred in the primary market. In the primary market, newly issued securities are directly sold by the issuer to investors. Choices A, B, D, and E all involve transactions between individuals in the secondary market, where securities are bought and sold among investors.

Which One of the Following Transactions Occurred in the Primary