Ask Question
9 August, 19:42

Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share. Hale sold the stock to an investment banker, who in turn sold it to individual and institutional investors. This is a secondary market transaction. True False

+2
Answers (1)
  1. 9 August, 20:10
    0
    False

    Explanation:

    Secondary market is a market of financial instruments where, individuals and institutional investors already holding securities perform transactions of buying and selling those securities held by them, as for example: New York exchange.

    Since in the given instance there is a sale of newly issued shares to investment banker and then through investment banker to individuals and institutional investors.

    Thus it is not a transaction of secondary market.

    The statement is false.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Recently, Hale Corporation announced the sale of 2.5 million newly issued shares of its stock at a price of $21 per share. Hale sold the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers