If you buy shares of Amazon on the primary market: a. You buy the shares from...

If you buy shares of Amazon on the primary market:

	a.	You buy the shares from the Federal Reserve.
	b.	You buy the shares from the New York Stock Exchange.
	c.	None of the answers are correct.
	d.	Amazon receives the money because the company has issued new shares.
	e.	You buy the shares from another investor who decided to sell the shares

Expert Solution

The correct answer is Option D

The Primary market is the market where the shares are created, In this market, the company sell the shares of it's company to the investor for the first time and the money received from the sale goes to the company while in secondary market you purchase the share from other investors who owns the share.

If You buys Amazon share in primary market then it means money went to the company who issue it.

jeff jeffy answered 2 years ago

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