Question

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.

Answer 1

C. South Wind Products sold 1,000 shares of newly issued stock to Mike.

Step-by-step explanation:

Primary market is the initial market. Basically the starting point of any transaction which has a commercial substance.

In the chosen option the company is selling its shares to public initially as a new issue of stock, which creates the availability of stock in the market. Else in all another options the shares are already present in the market and interchanged by different people in the market.

Primary market is the one which introduces the product in the market, and not the one which provided for exchange within the market.