Which of the Following Is True of an Initial Public

question 1

Multiple Choice

Which of the following is true of an initial public offering (IPO) ?

• A) Buying an IPO stock is less risky than purchasing established companies in the secondary market.
• B) An IPO stock can be sold later in the primary market.
• C) An IPO's stock price may rise or fall rapidly on the first day.
• D) An IPO represents a company that was just created within the last month.

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Definitions:

501(c)(4)

A designation for a type of nonprofit organization in the United States exempt from federal income tax, which promotes social welfare.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Political Purposes

Objectives or goals related to influencing, directing, or controlling government policy and actions.

Dark Money

Political spending by organizations that are not required to disclose their donors, making it difficult to identify the source of the funding.