Which of the Following Is Not One of the Components

question 41

Multiple Choice

Which of the following is not one of the components of an AIS?

• A)internal controls and security measures
• B)people
• C)procedures and instructions
• D)hardware

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Definitions:

Green Shoe Provision

An option in an IPO that allows underwriters to buy up to an additional 15% of company shares at the offering price to manage demand and stabilize the stock price after the IPO.

Quiet Period

A time frame in which companies are restricted from making certain announcements to prevent affecting their stock price before a securities offering.

Lockup Agreement

A contract stating that shareholders of a newly issued stock agree not to sell their shares for a certain period following an initial public offering.

Initial Public Offering (IPO)

The first sale of stock by a company to the public, marking a transition from a private to a publicly traded company.