Which of the Following Statements Is FALSE

question 46

Multiple Choice

Which of the following statements is FALSE?

• A) Once the issue price (or offer price) is set, underwriters may invoke another mechanism that allows them to sell extra shares of more successful offerings-the over-allotment allocation.
• B) Before the offer price is set, the underwriters work closely with the company to come up with a price range that they believe provides a reasonable valuation for the firm.
• C) Before an IPO, the company prepares the final registration statement and final prospectus containing all the details of the IPO, including the number of shares offered and the offer price.
• D) In a cash offer, a firm offers the new shares only to existing shareholders.

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Definitions:

Adverse Impact

Unintentional discrimination where a seemingly neutral employment practice disproportionately affects members of a protected class.

Occupational Safety

Practices and programs put in place to ensure the work environment is safe and healthy for employees.

Health Act

Legislation aimed at ensuring the provision of comprehensive health care services, improving public health, and enforcing health and safety standards.

Department of Labor

A government agency responsible for enforcing federal labor standards and promoting workers' rights.