Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A) After deciding to go public, managers of the company work with an underwriter, an investment banking firm that manages the offering and designs its structure.
• B) The shares that are sold in the IPO may either be new shares that raise new capital, known as a secondary offering, or existing shares that are sold by current shareholders (as part of their exit strategy), known as a primary offering.
• C) Many IPOs, especially the larger offerings, are managed by a group of underwriters.
• D) At an IPO, a firm offers a large block of shares for sale to the public for the first time.

---

Definitions:

Small Business Administration

A U.S. government agency that provides support to entrepreneurs and small businesses through loans, grant programs, and counseling.

Office of Advocacy

A governmental entity that represents the views and concerns of small businesses before federal agencies and Congress.

Thomas Friedman

An American journalist and author known for his work on globalization, international affairs, and environmental issues.

The World is Flat

"The World is Flat" is a concept popularized by Thomas Friedman, suggesting that global technological advancements and interconnectedness have leveled the economic playing field across nations.