Which of the Following Statements Is False

question 16

Multiple Choice

Which of the following statements is false?

• A) Primary shares are new shares issued by the company.
• B) Today, investors become informed about the impending sale of stock by the news media, via a road show, or through the book-building process, so tombstones are purely ceremonial.
• C) In a cash offer, the firm offers the new shares to existing shareholders.
• D) Historically, intermediaries would advertise the sale of stock (both IPOs and SEOs) by taking out advertisements in newspapers called tombstones.

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Definitions:

Gestalt Principle

A theory in psychology that proposes the human brain organizes visual elements into whole objects rather than perceiving their individual parts separately.

Size Constancy

The perceptual phenomenon where the perceived size of an object remains constant despite changes in its distance from the viewer.

Retinal Images

The images formed on the retina of the eye as a result of light reflecting off objects and entering the eye, crucial for visual perception.

Featural Analysis Theory

A theory in cognitive psychology that suggests humans process and recognize faces by breaking them down into their basic features or elements.