Which of the Following Is NOT True with Respect to Initial

question 97

Multiple Choice

Which of the following is NOT true with respect to initial public offerings (IPOs) ?

• A)IPOs are first-time offerings of shares by a specific firm to the public.
• B)Normally, a firm planning an IPO will hire a securities firm to recommend the amount of stock to issue and the asking price for the stock.
• C)Owners of firms that engage in IPOs are normally required to retain their shares for at least three years before selling them in the secondary market.
• D)IPOs are typically intended to raise funds so the corporation can expand.

---

Definitions:

CSR Practices

Corporate Social Responsibility practices involve companies voluntarily exceeding legal requirements to benefit social and environmental causes.

Formal

Pertaining to official, structured, and often ceremonious procedures or arrangements within an organization.

Informal

Lacking official procedure or formal structure, often characterized by casual and relaxed interactions.

Visible Minority Group

An ethnic or racial group that is different from the majority population in appearance or culture, and is recognized as such in society.