Which of the Following Statements Is FALSE

question 36

Multiple Choice

Which of the following statements is FALSE?

• A)Many IPOs, especially the larger offerings, are managed by a group of underwriters.
• B)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.
• C)At an IPO, a firm offers a large block of shares for sale to the public for the first time.
• D)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.

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Definitions:

Surplus

The situation that occurs when the quantity supplied of a good exceeds the quantity demanded at a given price.

Market For Candy

A consumer market segment dealing with the buying and selling of various types of candies.

Price

The amount of money required to purchase a product or service.

Demand Curve

A graphical representation showing how the quantity demanded of a good or service varies with its price.