Question

question 12
which of the following statements is correct?
the nyse is an example of an over - the - counter market.
as they are generally defined, money market transactions involve debt securities with maturities of less than one year.
if you purchase 100 shares of disney stock from your brother - in - law, this is an example of a primary market transaction.
only institutions, and not individuals, can engage in derivative market transactions.
if disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.

Explanation:

• The NYSE is a centralized exchange, not an over - the - counter market.
• Money market transactions typically involve short - term debt securities (maturities less than one year).
• Buying stock from a brother - in - law is a secondary market transaction, not a primary market one.
• Both institutions and individuals can engage in derivative market transactions.
• When a company issues new shares through an investment banker, it is a primary market transaction.

Answer:

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