A small investor from New Brunswick has just purchased 100 common shares of a telecommunications firm on
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Question:
A small investor from New Brunswick has just purchased 100 common shares of a telecommunications firm on the Toronto Stock Exchange. This is the first time the investor has purchased this stock. This transaction is an example of
a. A primary market transaction because it is the first time the investor has bought the stock.
b. A primary market transaction because the money the investor has invested will go directly to the firm.
c. A secondary market transaction because the investor has bought the stock from other investors.
d. None of the above; this is a large block trade and will be done using the OTC market (the "third market").
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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