Which of the following statements about secondary offerings is false?
A)Secondary offerings may occur when holders of large blocks of stock wish to sell too many shares for normal channels to handle.
B)Secondary offerings occur after an IPO.
C)Secondary offerings occur when an investment banker underwrites the sale of stock for existing stockholders, rather than for the company.
D)There is a trend away from the use of secondary offerings.

Question

Quizplus · Accepted Answer

The statement "There is a trend away from the use of secondary offerings" is false. Secondary offerings remain a common way for existing stockholders to sell their shares, and companies continue to use them to raise additional capital.

Which of the Following Statements About Secondary Offerings Is False