Which of the Following Statements Is FALSE

question 46

Multiple Choice

Which of the following statements is FALSE?

• A) Once the issue price (or offer price) is set, underwriters may invoke another mechanism that allows them to sell extra shares of more successful offerings-the over-allotment allocation.
• B) Before the offer price is set, the underwriters work closely with the company to come up with a price range that they believe provides a reasonable valuation for the firm.
• C) Before an IPO, the company prepares the final registration statement and final prospectus containing all the details of the IPO, including the number of shares offered and the offer price.
• D) In a cash offer, a firm offers the new shares only to existing shareholders.

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Definitions:

Biological

Pertaining to the science of life or living organisms and their processes.

Traumatic Secret

Information related to a distressing or disturbing experience that is concealed by an individual, often leading to psychological strain.

Mental Health

A state of well-being in which an individual realizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to make contributions to their community.

Professional Counselor

A licensed individual trained to provide psychological therapy and advice to individuals or groups.