Which of the Following Statements Is FALSE

question 43

Multiple Choice

Which of the following statements is FALSE?

• A)After deciding to go public,managers of the company work with an underwriter,an investment banking firm that manages the offering and designs its structure.
• B)The shares that are sold in the IPO may either be new shares that raise new capital,known as a secondary offering,or existing shares that are sold by current shareholders (as part of their exit strategy),known as a primary offering.
• C)Many IPOs,especially the larger offerings,are managed by a group of underwriters.
• D)At an IPO,a firm offers a large block of shares for sale to the public for the first time.

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Definitions:

Debtors

Individuals or entities that owe money to another party, often a lender or financial institution.

Chapter 7

A provision under the U.S. Bankruptcy Code dealing with the process of liquidation, where a debtor's assets are sold off to pay creditors.

Debtor's Estate

The total assets and liabilities of a debtor that are considered in the event of bankruptcy or for satisfying debts.

Creditors

Individuals or institutions to whom money is owed by debtors.