At What Stage of the IPO Process Do Senior Management

question 81

Multiple Choice

At what stage of the IPO process do senior management and the lead underwriters travel to promote the company and explain their rationale for the offer price to the underwriters' largest customers?

• A) when filing with the secs
• B) after initial price range is established
• C) when managing risk
• D) when matching buyers to sellers of the stock

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Definitions:

Reverse Stock Splits

A corporate action in which a company reduces the total number of its outstanding shares to increase the share price without altering the company's market capitalization.

Shares Outstanding

The total number of shares of stock that are currently owned by shareholders, including those held by institutional investors and restricted shares.

Share Price

The price of a single share of a company's stock, determined by market supply and demand.

Stock Dividend

Increases the number of shares outstanding, but at a slower rate than splits. Current shareholders receive additional shares on some proportional basis. Thus, a holder of 100 shares would receive 5 additional shares at no cost if a 5% stock dividend were declared.