Question

"Classify the following transactions as taking place in the primary or secondary markets:

P&G; sells $5 million of GM preferred stock from its marketable securities portfolio.

The Vanquish Fund buys $100 million of previously issued P&G; bonds. Gecko Insurance Co. sells $10 million of GM common stock.

Ford Motor issues $200 million of new common stock.

The Betterment Company issues $50 million of common stock in an IPO." (Cornett, Adair, & Nofsinger, 2016).

Answer 1

P&G sells $5 million of GM preferred stock from its marketable securities portfolio	secondary market
The vanquish fund buys $100 million of previously issued bonds	secondary market
Gecko insurance co sells $10 million of GM common stock	Secondary market
Ford issued $200 m of new common stock	Primary market
the betterment company issues $50 million of common stock in an IPO	Primary market

note:

primary market transactions are those in which newly issued stocks are issued.

Secondary market is the one in which already issued stocks are traded.