Question

Tim sells his shares in BHP and buys shares in a tech stock company. Explain why...

Tim sells his shares in BHP and buys shares in a tech stock company. Explain why they are primary or secondary market transactions.

Homework Answers

Answer #1

These are SECONDARY MARKET TRANSACTIONS because the shares which has already been issued by the company are continuously traded on the stock exchange and TIM had sold his shares of one company and has got the shares of another company, so these are the shares which has already been issued and these are not been used there because only new shares are issued in the primary market, this is our secondary market transaction because these shares are already issued shares and this is trading on stock exchange.

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