At What Stage of the IPO Process Do Senior Management

question 83

Multiple Choice

At what stage of the IPO process do senior management and the lead underwriters travel to promote the company and explain their rationale for the offer price to the underwriters' largest customers?

• A)when filing the preliminary prospectus
• B)when filing the final prospectus
• C)when managing risk
• D)when matching buyers to sellers of the stock
• E)when valuating the firm

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Definitions:

Private Market

A part of the financial market in which financial instruments and assets are traded that are not available on the public stock exchanges.

Marginal Social Benefit

The additional benefit received by society from the production or consumption of one more unit of a good or service.

Marginal Cost

The expense incurred from manufacturing an extra unit of a product or service.

Total Social Benefit

The total benefit to society from producing or consuming a good, including both private benefits and any external benefits.