Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A) Underwriters appear to use the information they acquire during the book-building stage to intentionally underprice the IPO, thereby reducing their exposure to losses.
• B) The green shoe option restricts an underwriter to issue more stock at the IPO offer price.
• C) The lead underwriter usually makes a market in the stock by matching buyers and sellers and assigns an analyst to cover it.
• D) In most cases, the existing shareholders are subject to a 180-day lockup; they cannot sell their shares for 180 days after the IPO. Once the lockup period expires, they are free to sell their shares.

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Definitions:

Mental Functions

Cognitive functions and processes related to the mind, including perception, thinking, reasoning, and remembering.

Visual Acuity

The clarity or sharpness of vision, typically measured by the ability to discern letters or numbers at a standardized distance.

Positive Aging

The process of maintaining a positive outlook and well-being while navigating the natural aging process.

Physical Functioning

The ability to perform tasks and activities that require physical capability, including daily living activities and physical exercise.