Ted currently owns 100 shares of a publicly traded stock that he would like to sell.Which one of the following provides the most efficient means for Ted to sell his shares?
A)Issuer-sponsored Dutch auction
B)Proxy statement
C)Private placement transaction
D)Stakeholder purchase
E)Secondary market transaction

Question

Quizplus · Accepted Answer

The secondary market transaction is the most efficient means for Ted to sell his shares as it involves selling the shares to another investor through a stock exchange, which provides liquidity and transparency. Issuer-sponsored Dutch auction, private placement transaction, and stakeholder purchase are all methods used for primary market transactions, whereas a proxy statement is a document used for voting in corporate elections and proposals. Therefore, the secondary market transaction is the most suitable option for Ted to sell his shares efficiently.

Ted Currently Owns 100 Shares of a Publicly Traded Stock