On August 19,2004 Google IPO Offered 19,605,052 Shares at a Price

question 61

Multiple Choice

On August 19,2004 Google IPO offered 19,605,052 shares at a price of U.S.$85 per share,which were sold in an online auction in a bid to make the shares more widely available.Which of the following statements best describes why these are considered a primary market transaction?

• A)The transaction was between the corporation and investors.
• B)Shares of Google from this time onward could be traded between investors on a stock exchange.
• C)The shares were the first to be publicly issued by Google.
• D)Google was at the time a recently founded company seeking capital with which to expand.

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Definitions:

Mortgage Loan

A mortgage is a loan that is secured by tangible real estate property, evidenced through a mortgage note that demonstrates both the loan's existence and the property's lien.

Penalty

A sum inserted into a contract not as a measure of compensation for its breach but rather as punishment for a default. The agreement as to the amount will not be enforced, and recovery will be limited to actual damages.

Lien

A legal right or claim against a property by a creditor to secure the payment of a debt or obligation.

Borrower

An individual or organization that receives funds from another party under the condition of returning it over time with interest.