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.

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Definitions:

Clear Sense

A thorough understanding or perception of a situation, concept, or task at hand.

Instrumental Values

Beliefs or values that act as methods or tools for achieving desired end states or objectives.

Terminal Values

Fundamental beliefs or ideals that a person or organization considers to be of the utmost importance and that guide behavior and decision-making.

Example

A representative case or instance that illustrates a principle or concept.