Question

you recently sold 100 shares of microsoft stock to your brother at a family reunion. at the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. which of the following best describes this transaction?
this is an example of a derivative market transaction.
this is an example of an exchange of physical assets.
this is an example of a money market transaction.
this is an example of a direct transfer of capital.
this is an example of a primary market transaction.

Explanation:

A direct transfer of capital occurs when one - party directly sells an asset (in this case, Microsoft stock) to another party and receives payment directly. It is not a derivative market transaction as derivatives are based on an underlying asset's value. Stock is a financial asset, not a physical asset. Money market transactions involve short - term debt securities. Primary market transactions are when a company issues new securities for the first time, and this is a transfer of existing shares.

Answer:

This is an example of a direct transfer of capital.