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:

Filtered

Refers to the process of screening or sorting information or data based on specific criteria to streamline focus or understanding.

Semantics

The study of meaning in language, including the meanings of words, phrases, signs, and symbols.

Role Expectations

The social norms and behaviors that are anticipated from an individual in a specific position or role.

Hit a Home Run

To achieve great success in a particular endeavor or activity, often surpassing expectations.