If Facebook Has an IPO in the Primary Market,who Would

question 12

Multiple Choice

If Facebook has an IPO in the primary market,who would receive the proceeds from the sale of the stock?

• A)Investors
• B)NYSE
• C)Facebook
• D)ADR's

---

Definitions:

Unearned Interest Income

It is the interest earned on investments or loans that has been recorded but not yet received in cash.

Bargain Purchase Option

A lease agreement provision allowing the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.

Fair Value

An estimate of the market value of an asset or liability based on current prices in active markets for similar assets or liabilities.

Lessee

A Lessee is a person or entity who leases an asset from another, the lessor, under a lease agreement.