Which of the Following Is False

question 8

Multiple Choice

Which of the following is false?

• A)Investment banks underwrite securities offering in both the primary and secondary markets.
• B)Investment banks design, market, and underwrite new issues of securities.
• C)A new issuance of stocks or bonds by a company that has not previously sold stocks or bonds is called an initial public offering (IPO).
• D)An offering of new stocks or bonds by a company that has previously sold stocks or bonds is called a secondary offering.

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Definitions:

Industry Expands

The growth phase of an industry characterized by an increase in output, number of producers, or production capacity.

Accompanying Graph

A visual representation used alongside data or concepts to illustrate trends, patterns, or relationships in a clear and effective manner.

Decreasing-Cost Industry

An industry in which costs per unit decline as the industry scales up production, often due to economies of scale.

Average Cost

The total cost of production divided by the quantity of the product produced, indicating the cost per unit of output.