The Difference Between an IPO and a Secondary Offering Is

question 35

Multiple Choice

The difference between an IPO and a secondary offering is that:

• A)the secondary offering does not incur direct costs.
• B)venture capitalists fund the secondary offering.
• C)additional, non-outstanding shares are sold to new investors from the early investors.
• D)shares may be repurposed by the underwriter in a secondary offering.

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Definitions:

Unearned Revenues

Unearned revenues are funds received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet until the obligation is fulfilled.

Unearned Consulting Revenue

Revenue received for services that have not yet been performed or delivered and is recorded as a liability until the service is provided.

Consulting Revenue

Income generated from providing expert services to clients on a professional basis.

Down Payment

An initial upfront portion of the total amount due that is paid at the time of purchase, often in the context of buying property or high-value items.