The secondary securities market
Question
Which of the following transactions would take place in the secondary securities market?
A) An investor buys
a bond from Ford.
B) Profits from newly issued securities benefit the issuing company, not the investors.
C) An investor buys an IPO stock through an investment bank.
D) An investor buys a secondary offering stock from the issuing company.
E) An investor buys a stock from another investor.Suppose your investment returns are taxed at a 40% rate. If you invest $12,500 today and expect to earn a rate of return of 5%, what will your investment be worth in 15 years?
A) $18,023.11
B) $18,103.73
C) $19,474.59
D) $54,024.28
E) $25,986.60