One example of a primary market transaction would be the: O 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. OC. sale of 1,000 shares of newly issued stock by Alt Company to Miquel. O D. sale by Terry of 50,000 shares of stock to his brother. O E. sale of 5,000 shares of stock owned by a corporate CEO to his son.
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- A decedent invested in the stocks of ABC Corporation by Purchasing stocks from an investor who sold the shares at P 125 per share. At the date of the decedent's death, the stocks were selling P 134 per share. What is the value to include in gross estate?Indicate whether the following statements are true or false. If the statementis false, explain why.b. If you own 100 shares in a company’s stock and the company’s stocksplits 2-for-1, then you will own 200 shares in the company followingthe split.Walton decided to issue additional new common stock. Mr. Adib Rahman, an individual investor purchased 100 shares of this stock from Munawar Associates, the underwriter. Would this transaction be a primary or a secondary market transaction? If Mr. Adib Rahman purchased previously outstanding Walton stock from another investor, then which financial market will this transaction be traded in?
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- In each of the following independent situations, determine if the redemption of shares will be treated as an exchange or as a distribution. For situations 1 – 2, the ownership of a corporation is: Andy 40 shares Barb 20 shares Cindy 40 shares Situation 1: The corporation redeems 10 shares of stock held by Barb. Situation 2: The corporation redeems 30 shares of stock held by Cindy. Situation 3: The corporation redeems 15 shares of stock held by Andy. Situation 4: Same facts as Situation 1 except Andy is Barb’s father. To answer this be sure to first review the “Attribution Rules”Xyna Company has 400,000 shares of common stock outstanding and is considering issuing another 100,000 shares through stock rights. Each current stockholder will obtain one right per share. Mr. A owns 40,000 shares of common stock. 1. What will Mr. A’s percentage interest in the company be after exercising all his rights? 2. Did his percentage ownership change after exercising his rights relative to what it was before the rights offering?If Apple Computer decided to issue additional common stock and Viola purchased 70 shares of this stock from Lincolndale, the underwriter- what type of market transaction took place here? Would it make any difference if Viola purchased previously outstanding Apple stock in the dealer market? - Explain types of markets implied in the scenario.
- Shell product decided to raise additional financing by issuing common stock. The company received OMR6400 in exchange for OMR 1500 shares of OMR 1 par value common stock. By what amount should the additional paid-in capital account increase as a result of this transaction? Select one: a. OMR7900 O b. None of the options c. OMR3000 O d. OMR49005. JFINEX Corporation declared dividends on January 15. The payment date is February 5, the date of record is on February 1, and the ex-dividend date is on January 27. Maria bought 100 shares of the company's stock on January 16. Maria sells her shares to Alex on January 27 and Alex sells to Toni on February 1. Who is entitled to the dividend?" A) Maria B) Alex C) Toni D) The person who sold the share to Maria E) NoneMiss Wells has purchased the shares of two companies over the years. Each company has only one class of shares. Purchases and sales of shares in the first of these companies, Memo Inc., are as follows: February, 2015 purchase November, 2016 purchase April, 2017 purchase October, 2017 sale September, 2019 purchase November, 2019 sale 60 @ $24 90 @ 28 45 @ 30 (68) @ 36 22 @ 26 (53) @ 40 Purchases and sales of shares in the second company, Demo Ltd., are as follows: April, 2018 purchase December, 2018 purchase July, 2019 sale $24 160 @ (260) @ 36 200 33 Required: A. Determine the cost to Miss Wells of the Memo Inc. shares that are still being held on December 31, 2019. B. Determine the taxable capital gain resulting from the July, 2019 disposition of the Demo Ltd. shares.