Which of the Following Is False with Respect to Initial

question 86

Multiple Choice

Which of the following is false 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:

Balance Theory

A psychological theory suggesting that people prefer harmony and consistency in their views of the world and relationships.

Learning Theory

A comprehensive framework that describes how individuals acquire, process, and retain knowledge and skills through experience, observation, and instruction.

New Attitudes

Recently formed or significantly changed opinions or feelings towards a person, object, or situation.

Cognitive Approach

A psychological perspective that focuses on mental processes such as perception, memory, and problem-solving to understand behavior.