Question

Identify whether the following transactions are primary market or secondary market transactions. a. You buy 855 shares of ABC Co. through your brokerage account. b. You buy $5,801 of XYZ Co. bonds from another investor. c. M

Answer 1

The answer is:

A - Secondary market

B - Secondary market

Step-by-step explanation:

Primary market is when a share is brought directly from a company through its Initial Public Offering. It is from the company directly to the investors WHILE secondary market is when an investor buys already issued shares from another investor or from a dealer.

A - Secondary market

B - Secondary market