ce future acquisitions. 3. A company becomes public when it starts an IPO. 4. Payment of dividends from the Amazon firm. 5. Repurchase of shares by the issuer of these. 6. A company exchanges previously issued bonds for preferred shares of the same company. 7. A private investor acquires shares of another counterpart investor. 8. A company buys from another company using

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following transactions are presented in the markets.

1. A car distributor issues commercial paper to finance the purchase of a fleet of vehicles for inventory.

2. A company issues shares to finance future acquisitions.

3. A company becomes public when it starts an IPO.

4. Payment of dividends from the Amazon firm.

5. Repurchase of shares by the issuer of these.

6. A company exchanges previously issued bonds for preferred shares of the same company.

7. A private investor acquires shares of another counterpart investor.

8. A company buys from another company using its own resources (cash).

9. The government of a country issues bonds to finance public capital works.

10. A Chinese investor buys dollars and pays with yuan.

Identify what type of market each transaction belongs to. Primary or secundary

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