Which of the Following Statements Is FALSE

question 46

Multiple Choice

Which of the following statements is FALSE?

• A) Once the issue price (or offer price) is set, underwriters may invoke another mechanism that allows them to sell extra shares of more successful offerings-the over-allotment allocation.
• B) Before the offer price is set, the underwriters work closely with the company to come up with a price range that they believe provides a reasonable valuation for the firm.
• C) Before an IPO, the company prepares the final registration statement and final prospectus containing all the details of the IPO, including the number of shares offered and the offer price.
• D) In a cash offer, a firm offers the new shares only to existing shareholders.

---

Definitions:

Diarrhea

A condition characterized by the frequent passage of loose or watery stools, often indicating gastrointestinal distress or infection.

Sodium and Potassium

Essential electrolytes in the human body that play critical roles in maintaining fluid balance, nerve transmission, and muscle function.

Bowel Training Program

A structured plan designed to help individuals develop regular and healthy bowel habits.

Bowel Habits

The routine characteristics, including frequency and consistency, of a person's bowel movements, which can indicate health or digestive issues.