Question

When Patricia sells her Apple stock at the same time that Brian purchases the same amount of Apple stock, Apple receives:_____________.

a. nothing.
b. only the market value of the common stock.
c. the dollar value of the transaction.
d. the dollar amount of the transaction, less brokerage fees.

Answer 1

When Patricia sells her Apple stock at the same time that Brian purchases the same amount of Apple stock, Apple receives:_____________.

a. nothing.

Step-by-step explanation:

The activities of investors on the Stock Exchange market do not affect the corporation, whose stocks are being traded. The corporation does not get any money nor does it incur any cost. Patricia may get a capital gain from the sale and not the corporation. When Brian purchases Apple stock it is purchased from another investor and not directly from the corporation unless it is an initial public offer.