Which One of the Following Statements Concerning the Primary Market

Multiple Choice

Which one of the following statements concerning the primary market is correct?

A) A rights offering is a direct sale of stock to an institution that participates in the primary market.
B) The first public sale of a company's stock is called an IPO.
C) A transaction in the primary market is between two private shareholders.
D) The first public sale of a company's stock in the primary market is called a seasoned new issue.