Which one of the following transactions would occur in the primary market?

A) The gifting of ABC Co. shares by a grandmother to her grandchildren.
B) A financial institution selling shares of OPQ stock to another financial institution.
C) An individual selling shares of JKL stock to an existing JKL shareholder.
D) A financial institution buying shares of LM stock from an LM executive.
E) KM Co. selling new shares of stock to a financial institution.

Primary Market

The primary market involves the issuance and sale of new securities directly from the issuer to investors, facilitating capital raising for governments, corporations, and other entities.

Financial Institution

An organization that provides financial services, such as banking, insurance, or investment management, to consumers and businesses.

New Shares

Shares issued by a company for the first time to the public or existing shareholders as a means of raising capital.