Describes the outcome of dynamic

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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?

The secondary investors earn a capital gain of $7 per share.

The investment bank takes a loss of $7 per share.

The secondary investors take a loss of $28 per share.

The investment bank sells the shares back to XYZ Company at $35 per share.

XYZ Company takes a loss of $7 per share.

Reference no: EM132314669

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