High-Quality Initial Public Offerings Are Usually Sold in a Primary

question 22

True/False

High-quality initial public offerings are usually sold in a primary market, such as the New York Stock Exchange. However, low-quality stocks must usually be sold in secondary markets, such as NASDAQ.

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Definitions:

Interest Rate Ceilings

A regulatory measure that sets the maximum interest rate that can be charged on loans and other financial products.

Deregulation

The process of reducing or eliminating government controls and restrictions in an industry to enhance efficiency and competition.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that provides insurance protection to depositors in US banks.

Mortgage-Backed Security

A claim on payments made on the many mortgages bundled into this financial instrument.