The Difference Between an IPO and a Secondary Offering Is

question 46

Multiple Choice

The difference between an IPO and a secondary offering is that:

• A)The secondary offering does not incur direct costs
• B)Venture capitalists fund the secondary offering
• C)Additional, non-outstanding shares are issued in an IPO
• D)Shares may be repurposed by the underwriter in a secondary offering

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Definitions:

Oligopoly Market

A market structure characterized by a small number of large firms dominating the market, with significant barriers to entry for new competitors.

Marginal Revenue Curve

The marginal revenue curve represents the change in total revenue that results from selling one more unit of a product.

Crude Oil Production

The process of extracting oil from underground reservoirs and preparing it for refining into usable products such as gasoline, diesel, and other petrochemicals.

Effective Collusion

coordination between competing firms to control prices or market shares in a way that benefits the entities involved, often at the expense of fair market competition.