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.