Question

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.
if disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.
the nyse is an example of an over - the - counter market.
only institutions, and not individuals, can engage in derivative market transactions.
as they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Explanation:

1. Buying stock from a brother - in - law is a secondary market transaction, not primary.
2. Disney issuing new shares through an investment bank is a primary market transaction.
3. The NYSE is an organized exchange, not over - the - counter.
4. Both institutions and individuals can engage in derivative market transactions.
5. Money market transactions typically involve debt securities with maturities of less than one year.

Answer:

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