Which of the following is a primary market transaction? A. You sell 200 shares o

Question

Which of the following is a primary market transaction?

A. You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker.

B. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker.

C. You buy 200 shares of Johnson & Johnson stock from your younger the trade is?brother. You just give him cash and he gives you the stock not made through a broker.

D. One financial institution buys 200,000 shares of Johnson & Johnson stock from another institution. An investment banker arranges the transaction.

E.You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of Johnson & Johnson shares on the NYSE.

A. You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker.

B. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker.

C. You buy 200 shares of Johnson & Johnson stock from your younger the trade is?brother. You just give him cash and he gives you the stock not made through a broker.

D. One financial institution buys 200,000 shares of Johnson & Johnson stock from another institution. An investment banker arranges the transaction.

E.You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of Johnson & Johnson shares on the NYSE.

Explanation / Answer

b. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker.

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