Which of the Following Are True About IPOs

question 121

Multiple Choice

Which of the following are true about IPOs?

• A) An IPO is the first time a firm's shares are listed on a stock exchange and publicly traded.
• B) An IPO is the first time a firm sells shares to any investor.
• C) After the IPO, shares begin trading on the secondary market.
• D) A and C are correct.

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Definitions:

Complexity

Referring to the state or quality of being intricate or complicated, often involving numerous interdependent parts or elements.

Purity

The state or quality of being pure, free from contaminants, or possessing a single, unmixed element or nature.

Hertz

The unit of frequency in the International System of Units (SI), representing one cycle per second.

Nanometers

A unit of length in the metric system, equal to one billionth of a meter, commonly used to measure wavelengths of light.