Which of the Following Statements Is FALSE

question 43

Multiple Choice

Which of the following statements is FALSE?

• A)After deciding to go public,managers of the company work with an underwriter,an investment banking firm that manages the offering and designs its structure.
• B)The shares that are sold in the IPO may either be new shares that raise new capital,known as a secondary offering,or existing shares that are sold by current shareholders (as part of their exit strategy),known as a primary offering.
• C)Many IPOs,especially the larger offerings,are managed by a group of underwriters.
• D)At an IPO,a firm offers a large block of shares for sale to the public for the first time.

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Definitions:

Constant Costs

Costs that remain unchanged regardless of the level of output or activity within a certain range.

Corncob Pipes

Pipes made from the dried cob of a corn plant, often used for smoking tobacco.

Cournot Reaction Function

A mathematical representation in economics that shows how one firm reacts to the quantity choice of another firm in a duopoly market setting.

Inverse Demand Function

Represents the relationship between the price of a good and the quantity demanded, showing how price must adjust to maintain equilibrium between supply and demand.