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.

---

Definitions:

Group Boycotts

A concerted refusal by a group of businesses to deal with a particular company or a form of collective industrial action.

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890 to preserve competitive markets by prohibiting monopolies, cartels, and other forms of anti-competitive behavior.

Group Boycotts

A concerted action by businesses to exclude a party from commercial dealings, potentially violating antitrust laws.

Rule Of Reason

A doctrine used in antitrust law to determine if a business practice is acceptable, considering its purpose, effects, and whether it restrains trade.