An initial public offering (IPO)is characterized by all of the following except
A)the first time offering of stock by a corporation.
B)can be sold later for a profit in the secondary market.
C)can result in losing the investment.
D)is available to individual investors before institutional investors.

Question

Quizplus · Accepted Answer

IPO shares are generally made available to institutional investors before individual investors. This allows institutions to buy large amounts of shares at a lower price before individual investors can participate in the market. Therefore, D is the incorrect statement as it states the opposite. A, B, and C are all correct statements about IPOs.

An Initial Public Offering (IPO)is Characterized by All of the Following