One example of a primary market transaction would be the: a.sale of 100 shares of stock by Maria to her best friend. b. purchase by Theo of 5,000 shares of stock from his father. c. sale of 1,000 shares of newly issued stock by Alt Company to Miquel. d. sale by Terry of 50,000 shares of stock to his brother. e. sale of 5,000 shares of stock owned by a corporate CEO to his son.
The primary market transaction takes place when the organization sells the shares to a subscriber. If the shareholders sells the stocks to some other person,it is called secondary market transaction.