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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