Which of the Following Statements Is FALSE

question 32

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, a 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:

Liability

Legal responsibility for one's actions or for a device, product, or process that can cause harm, leading to the obligation to make restitution.

Implied Authority

The power of an agent to perform acts that are reasonably necessary to accomplish the purpose of an agency agreement.

Consolidate

To combine multiple elements into a single, more effective or coherent whole, often used in the context of financial statements or businesses.

Statement of Dissolution

A legal document filed with a government body to officially dissolve a corporation or partnership.