Which One of the Following Statements Is NOT True

question 58

Multiple Choice

Which one of the following statements is NOT true?

• A) In a competitive sale, the firm specifies the type and amount of securities it wants to sell.
• B) In a negotiated sale, the issuer selects the underwriter at the beginning of the origination process.
• C) In a general cash offer, management must decide whether to sell the securities on a competitive or a negotiated basis.
• D) For equity securities, competitive sales generally provide the lowest-cost method of sale.

---

Definitions:

Liquidity

The ability of an asset to be converted into cash quickly without losing value.

Asset Management

The method of creating, running, upkeeping, and marketing assets in an economical way.

Profitability

A measure of how effectively a company generates profit from its revenues, indicating the financial success and health of a business.

Liquidity

Refers to the ease with which assets can be converted into cash without significant loss of value.