Practice Quiz

FINRA Series 6

Category - Series 6

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Which of the following is an example of a primary market transaction?
  1. Exco Resources (XCO) sells a new issue of 7.5%, 8-year notes.
  2. Ms. Talker calls her broker and places a market order to sell shares of AT&T (T) on the NYSE.
  3. Mr. Safe purchases a Treasury bill with two weeks remaining to maturity.
  4. Mr. Green places an order to buy shares of Sunvalley Solar, Inc. (SSOL), a stock selling on the OTC Bulletin Board.
Explanation
Answer: A - Exco Resources’ new bond issue is a primary market transaction. The primary market refers to the market for new issues. The other three scenarios describe transactions in securities that are already being traded and are secondary market transactions.
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