On August 19, 2004 Google IPO Offered 19,605,052 Shares at a Price

question 60

Multiple Choice

On August 19, 2004 Google IPO offered 19,605,052 shares at a price of U.S. $85 per share, which were sold in an online auction in a bid to make the shares more widely available. Which of the following statements best describes why these are considered a primary market transaction?

• A) The transaction was between the corporation and investors.
• B) Shares of Google from this time onward could be traded between investors on a stock exchange.
• C) The shares were the first to be privately issued by Google.
• D) Google was at the time a recently founded company seeking capital with which to expand.

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Definitions:

Big Corporations

Large and influential companies that have significant control over their respective markets, often playing a crucial role in economic and political issues.

Wall Street Investors

refers to individuals or entities engaging in the purchase and sale of financial instruments such as stocks, bonds, and other securities within the financial markets based in the Wall Street area of New York City.

Homestead Act

A United States federal law passed in 1862 that allowed American adults to claim 160 acres of public land after living on and cultivating it for five years.

Southern Opposition

Resistance or dissent specific to the southern region of the United States, often in the context of historical events like the Civil War, civil rights movement, or political ideologies.