Which of the Following Statements Is FALSE

question 62

Multiple Choice

Which of the following statements is FALSE?

• A)In most cases, the pre-existing shareholders are subject to a 180-day lockup; they cannot sell their shares for 180 days after the IPO. Once the lockup period expires, they are free to sell their shares.
• B)Underwriters appear to use the information they acquire during the book-building stage to intentionally underprice the IPO, thereby reducing their exposure to losses.
• C)The lead underwriter usually makes a market in the shares and assigns an analyst to cover it.
• D)The bluetooth option allows the underwriter to issue more shares, amounting to 15% of the original offer size, at the IPO offer price.

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Definitions:

Parietal Lobe

A region of the brain involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Cingulate Gyrus

A curve of brain tissue located above the corpus callosum that plays a role in emotion formation, processing, learning, and memory.

Inaccurate Memories

Memory distortions or inaccuracies that arise from the retention, interpretation, and retrieval process, leading to false or altered recollection of events.

Suggestible People

Individuals who are more likely to accept and internalize ideas or attitudes suggested by others.