Which of the Following Statements About Secondary Offerings Is False

question 44

Multiple Choice

Which of the following statements about secondary offerings is false?

• A)Secondary offerings may occur when holders of large blocks of stock wish to sell too many shares for normal channels to handle.
• B)Secondary offerings occur after an IPO.
• C)Secondary offerings occur when an investment banker underwrites the sale of stock for existing stockholders, rather than for the company.
• D)There is a trend away from the use of secondary offerings.

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Definitions:

Duty of Care

Duty of care is a legal obligation imposed on individuals to exercise a reasonable standard of care while performing any acts that could foreseeably harm others.

Negligence Action

A legal suit filed by an individual claiming harm due to another party's failure to exercise an appropriate level of care.

Forfeiture Rule

The principle that a criminal should not be permitted to profit from a crime.

Criminal's Estate

The assets and properties owned by a criminal, which may be subject to legal action or forfeiture in the event of legal proceedings against the individual.