An Initial Public Offering (IPO)

question 4

Multiple Choice

An initial public offering (IPO)

• A)is less risky than purchasing stocks in the secondary market.
• B)can be sold later in the primary market.
• C)can be a bargain as the stock prices may rise rapidly the next few days.
• D)is a good investment for the beginning investor.

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Definitions:

Procedural Rules

Regulations outlining the process and procedures that courts or other bodies follow when handling cases, disputes, or administrative matters.

Judicial Review

The power of courts to assess the constitutionality of the actions of the executive and legislative branches, or to ensure legal and administrative actions comply with the law.

Administrative Law

A branch of public law that governs the activities of administrative agencies of government, including rulemaking, adjudication, or the enforcement of a specific regulatory agenda.

Freedom of Information Act

A law that allows for the full or partial disclosure of previously unreleased information and documents controlled by the government.