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gift of stock by a shareholder to a family member 21. Shareholder A sold 500 shares of ABC stock on the New York Stock Exchan

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Answer #1

Had the company issued shares for the first time and these were bought by an investor, it would have been a sale in the primary market, so option A is incorrect

The shares were sold on the exchange, so it was not a private placement as it was open for all investors to bid. So option E is incorrect

Dealer market is the market where dealers put up their bids or offers, they are the counter parties so the sale didn't happen through a dealer so option B is incorrect

Investor sold his own shares and not on behalf of the real owner so it didn't involve a proxy, so option B is also incorrect

These shares were resold on a stock exchange which is an example of a secondary market so it was facilitated by the same. So option C is correct

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