A student remarks: "10,000,000 shares of General Motors were sold yesterday on the New York Stock Exchange, at an average $350 million from investors. Do you agree with the student's analysis? OA. Yes, these shares were likely traded in the primary market, so General Motors would receive $350 million OB. No, these shares were likely traded in the secondary market, so General Motors would not receive any of the money. OC. No, these shares were likely traded in an over-the-counter market, so GM would receive less than $350 million OD. Uncertain, since the sale is subject to capital gains, more information is required to determine how much GM would receive
A student remarks: "10,000,000 shares of General Motors were sold yesterday on the New York Stock Exchange, at an average $350 million from investors. Do you agree with the student's analysis? OA. Yes, these shares were likely traded in the primary market, so General Motors would receive $350 million OB. No, these shares were likely traded in the secondary market, so General Motors would not receive any of the money. OC. No, these shares were likely traded in an over-the-counter market, so GM would receive less than $350 million OD. Uncertain, since the sale is subject to capital gains, more information is required to determine how much GM would receive
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
A student remarks: "
10,000,000
shares of Generel Motors were sold yesterday on the New York Stock. Exchange, at an merage price of \$35 per share. That means General Motors just received
$350
milion from investors:
Do you agree with the students analysis?
A). Yes, these shares were likely traded in the primary market, 80 General Motons would feceive
$350milion
B). No, these shares were lavely traded in the secondary market so General Motors would net receive any of the money.
C). No, these shares were thely traded in an overthe-counter market, so GM would receive less han 5350 milion
D. Uncertain, shce the sale is sibject to caphal gains, more information is required to determine how much OM would receive.
Transcribed Image Text:A student remarks: "10,000,000 shares of General Motors were sold yesterday on the New York Stock Exchange, at an average price of $35 per share. That means General Motors just received
$350 milion from investors.
Do you agree with the student's analysis?
OA. Yes, these shares were likely traded in the primary market, so General Motors would receive $350 millon
OB. No, these shares were likely traded in the secondary market, so General Motors would not receive any of the money.
OC. No, these shares were likely traded in an over-the-counter market, so GM would receive less than $350 million
OD. Uncertain, since the sale is subject to capital gains, more information is required to determine how much GM would receive
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