A Secondary Offering IPO Occurs When

question 66

Multiple Choice

A secondary offering IPO occurs when:

• A) new shares are sold to provide the company with additional funds.
• B) the second public issue of equity becomes available.
• C) the company's founders or venture capitalists market a portion of their shares.
• D) not all of the shares in a primary IPO were sold.

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Definitions:

Buyer

A person or organization that purchases goods or services.

Law Of Demand

The economic principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.

Quantity Demanded

The quantity demanded is the amount of a good or service that consumers are willing and able to purchase at a given price, holding all else constant.

Price

The amount of money required to purchase a good, service, or asset, often influenced by factors like supply and demand.