Which One of the Following Statements About IPOs Is Not

question 62

Multiple Choice

Which one of the following statements about IPOs is not true?

• A) IPOs generally have been poor long-term investments.
• B) IPOs often provide very good initial returns to investors.
• C) IPOs generally provide superior long-term performance as compared to other stocks.
• D) Shares in IPOs are often primarily allocated to institutional investors.

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Definitions:

Advancement in Technology

describes improvements in technology that often lead to increased productivity, efficiency, and the creation of new products or processes.

Number of Producers

Refers to the total count or quantity of manufacturers or suppliers of a particular good or service in a market.

Input Prices

The cost of goods, services, and materials that are used to produce other goods or services.

Suppliers' Expectations

The anticipations or beliefs of suppliers about the future conditions of the market that can influence their decisions on production and pricing.