soddy1979

I said Investment bank too.... I believe Shelf Reg. is one of the features of a primary markets

eagles_dare13

I went for shelf registration - I can't remember the alternatives or the question clearly enough, but my feeling was that as shelf registrations were held back pieces of rights issues of listed companies they were effectively secondary market securities.

An investment banker selling a government security may be a secondary activity - i.e not originating - but that doesn't necessarily make it a secondary MARKET activity.

Still, not comfortable with this one - I may well be wrong.

chetan86

Aravinda Wrote:
-------------------------------------------------------
> A secondary market activity is...
>
> Shelf offering or
> An investment banker selling the governament
> security (like bills, notes, and bonds) to other?
>
>
> Dont remember the first choice..
>
> Thx


I would say an investment banker selling the government security is a secondary activity. If the government securities are already in possession of the investment banker, then they have already been sold into the open market. Once it is out of the hands of the originator, in this case, the U.S. government, every transaction thereafter is a secondary market activity.

FYI: A shelf offering consists of shares of stock that have yet to be sold by an investment bank. In other words, the investment bank who is underwriting the IPO keeps some shares "on a shelf" to sell into the market after the share price has gone up.

kasinkei

Good for u