Question

Identify the following transactions that they are whihc type of market.

a. A farmer agrees to sell 10,000 bushels of wheat at the rate of $4.50 per bushel to a buyer in three months. A regulated exchange, such as the Chicago Board of Trade, completes the transaction.
b. Long-term mortgage-backed securities are traded between investors and issuers.
c. An investor holding 3,000 shares of stock of Strata Corp. sells them to another investor.

Answer 1

A. Future market

B. Capital market

C. Secondary market

Step-by-step explanation:

A) A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date. In here farmer agrees to sell 10,000 bushels of wheat to the buyer on a specified future date.

B) A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold

C) The secondary market, also called the aftermarket and follow on the public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.