Refer to the Graph Shown

question 122

Multiple Choice

Refer to the graph shown. A quantity restriction of Q_R will:

• A)raise market price to P₀.
• B)maintain a market price of P₁.
• C)lower market price to P₂.
• D)have no effect in the market depicted.

---

Definitions:

IPO

Stands for Initial Public Offering, which is the process where a private company goes public by selling its shares to the general public for the first time.

Equity IPO

Initial Public Offering (IPO) of equity shares, where a company offers its stocks to the public for the first time.

Seasoned Offering

An offering of securities by a company that has previously issued securities to the public and is thus familiar to investors.

Red Herring

A preliminary prospectus distributed to prospective investors in a new issue of securities.