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Which of the following statements is CORRECT? If you purchase 100 shares of Disney stock from...

Which of the following statements is CORRECT?

If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction.

As they are generally defined, capital market transactions involve debt securities with maturities of less than one year.

If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.

If Sheila saves $10,000 and buys a certificate of deposit (CD) that will mature in six months, this would be a money market transaction.

Money markets are markets for long-term debt and common stocks.

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Answer:

If Sheila saves $10,000 and buys a certificate of deposit (CD) that will mature in six months, this would be a money market transaction.

Money market securities are that which mature within a duration of 1 year. Other capital markets has maturity more than one year. Secondary issuance of shares are that which are issued after the IPO for fund issuance

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