If a Stock Is Initially Offered to the Public for $20

question 14

Multiple Choice

If a stock is initially offered to the public for $20 in an underwriting but the price immediately falls to $15,​
1) the firm received $20 a share
2) the initial investors sustain a loss
3) demand exceeded supply
4) supply exceeded demand

• A)​1, 2, and 3
• B)​1, 2, and 4
• C)​2 and 3
• D)​2 and 4

---

Definitions:

Cliques

Groups of 2 to 12 people whose members have frequent social interactions with one another.

Crowds

In contrast to cliques, crowds are larger and looser groups, comprising individuals who share particular characteristics but who may not interact with one another.

Fine Motor Skills

The coordination of small muscle movements in activities such as writing, cutting with scissors, and manipulating small objects.

Racial Identity

An individual's awareness and experience of being a member of a specific racial group, influencing their sense of self and group membership.