Which of the Following Statements Is FALSE

question 32

Multiple Choice

Which of the following statements is FALSE?

• A) Primary shares are new shares issued by the company.
• B) Today, investors become informed about the impending sale of stock by the news media, via a road show, or through the book-building process, so tombstones are purely ceremonial.
• C) In a cash offer, a firm offers the new shares to existing shareholders.
• D) Historically, intermediaries would advertise the sale of stock (both IPOs and SEOs) by taking out advertisements in newspapers called tombstones.

---

Definitions:

Major Factors

Essential elements or determinants that play a significant role in influencing or deciding the outcome of a particular situation or in the analysis of a problem.

Thirteenth Amendment

An amendment to the United States Constitution, ratified in 1865, that abolished slavery and involuntary servitude, except as punishment for a crime.

Constitutional Amendment

A modification or change to a constitution, which in the United States requires a specific and rigorous process involving both Congress and the states.

Abolished Slavery

The action or legal process of formally ending the practice or institution of slavery, where individuals are owned by others as property.