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Title: An investment bank buys the first issue of stock from XYZ Company at $35 per share. As XYZ's shares ...
Post by: prodeco on Jun 14, 2017
An investment bank buys the first issue of stock from XYZ Company at $35 per share. As XYZ's shares are sold on the secondary securities market, the price falls to $28 a share. Which of the following describes the outcome of this dynamic?
A) The secondary investors take a loss of $28 per share.
B) The secondary investors earn a capital gain of $7 per share.
C) The investment bank sells the shares back to XYZ Company at $35 per share.
D) The investment bank takes a loss of $7 per share.
E) XYZ Company takes a loss of $7 per share.


Title: Re: An investment bank buys the first issue of stock from XYZ Company at $35 per share. As XYZ's ...
Post by: podra on Jun 14, 2017
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