Which of the Following Statements Is Correct

question 25

Multiple Choice

Which of the following statements is correct?

• A) The SEC must approve the price at which a stock is to be offered to the public when a company "goes public."
• B) If a company's stock is listed,then it trades in the over-the-counter (OTC)market.
• C) If the "preemptive right" exists in a company's charter,then the holders of its Class A shares have the right to receive a specified amount of dividends before dividends can be paid on Class B shares.
• D) A "prospectus" is a document which describes a company and the securities it plans to offer,and the prospectus generally must be approved by the SEC before a public offering of new securities can be made.
• E) The decision to list a company's stock generally is more important to the company than the decision to go public,i.e. ,listing has a larger impact on the way the firm is operated than does going public.

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Definitions:

Gas Filled Vacuoles

Structures within some cells that contain gas, which can provide buoyancy or maintain cell shape.

Pili

Hair-like structures on the surface of many bacteria that are involved in attachment to surfaces and in the transfer of genetic material.

Protist Structures

The varied and complex cellular organizations found in protists, ranging from single-celled to multicellular forms.

Eyespot

A pigmented organelle found in some algae and protozoa, allowing the organism to sense light direction.