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

Question

Quizplus · Accepted Answer

An initial public offering (IPO) is typically made available to institutional investors before it is offered to individual investors. This is because institutional investors, such as mutual funds and pension funds, often have the resources to buy large quantities of shares, which helps ensure the success of the IPO.

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