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17 December, 03:06

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

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  1. 17 December, 04:52
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    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.
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