Which of the Following Statements Is FALSE

question 11

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,the 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:

Accident Damage

Physical harm or destruction caused to property or persons as a result of an unexpected and non-deliberate incident.

Decision Making

Decision making involves selecting a course of action from several alternatives, often based on judgment, research, and reasoning.

Irrelevant Information

Information that has no bearing on the current situation or decision-making process; it does not affect outcomes.