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    Types of Stock Market Transactions

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    We can classify stock market transactions into three distinct types: What are the three types?

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    1. Trading in the outstanding shares of established, publicly owned companies; the secondary market. Allied Food Products had 50 million shares of stock outstanding. If the owner of 100 shares sells his or her stock, the trade is said to have occurred in the secondary market. Thus the market for outstanding shares, or used shares, is secondary market. The company receives no new money when sales ...

    Solution Summary

    This is a discussion of the three Types of Stock Market Transactions.