Purchasing a Firm's Stock in an IPO Can Be Risky

question 192

True/False

Purchasing a firm's stock in an IPO can be risky because financial information may not be fully disclosed.

---

Definitions:

Positive

In the context of electric charge, positive refers to an electric charge of the type carried by protons.

Negative

In the context of charge, negative refers to an electrical charge of the same type carried by electrons.

Ionic Compound

A chemical compound composed of ions held together by electrostatic forces termed ionic bonding.

Polar Nature

A characteristic of molecules that have an uneven distribution of electron density, resulting in regions of partial positive and negative charge which makes them interact with other polar substances including water.