Which of the Following Is True of an Initial Public

question 1

Multiple Choice

Which of the following is true of an initial public offering (IPO) ?

• A) Buying an IPO stock is less risky than purchasing established companies in the secondary market.
• B) An IPO stock can be sold later in the primary market.
• C) An IPO's stock price may rise or fall rapidly on the first day.
• D) An IPO represents a company that was just created within the last month.

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Definitions:

Polynomial

An algebraic expression consisting of variables and coefficients, combined only by addition, subtraction, multiplication, and non-negative integer exponents.

Greatest Common Factor

The highest number that divides exactly into two or more numbers without leaving a remainder.

Missing Factor

A value that, when multiplied with others, gives a specified result; often used in solving algebraic equations.

Greatest Common Factor

The largest number that divides two or more numbers without leaving a remainder.