Intro to Finance- Exam 1

For each transaction indicate whether it is in the primary or secondary market. Ron Brown purchases a bond from the issuer at par. __________ Ron purchases stock in Jet Co. at its current market price on the NYSE _________ Johnny Venture buys newly issues stock in Cloneworks, Inc. from Cloneworks ___________

1) Primary 2) Secondary 3) Primary

What are the two types of external capital?

Debt Securities Equity Securities