Which of the Following Statements Is Correct

question 25

Multiple Choice

Which of the following statements is correct?

• A) The SEC must approve the price at which a stock is to be offered to the public when a company "goes public."
• B) If a company's stock is listed,then it trades in the over-the-counter (OTC)market.
• C) If the "preemptive right" exists in a company's charter,then the holders of its Class A shares have the right to receive a specified amount of dividends before dividends can be paid on Class B shares.
• D) A "prospectus" is a document which describes a company and the securities it plans to offer,and the prospectus generally must be approved by the SEC before a public offering of new securities can be made.
• E) The decision to list a company's stock generally is more important to the company than the decision to go public,i.e. ,listing has a larger impact on the way the firm is operated than does going public.

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Definitions:

Decimal Places

The number of digits allowed to the right of the decimal point in a numeric field, affecting the precision of the values stored.

Datasheet

A tabular representation of data, typically found in spreadsheet or database software, that organizes elements of data in rows and columns.

One-To-Many Relationship

A database relationship where a single record in one table is related to multiple records in another table.

Common Field

A field that is present in two or more database tables, used as a link to join tables in queries or reports.