Question
1. Which of the following statements is False? A. IPOS are usually underpriced. B. Underwriters are not involved in a direct listing of stock. C.
1. Which of the following statements is False?
A. IPOS are usually underpriced.
B. Underwriters are not involved in a direct listing of stock.
C. PIPEs involve selling stock at below-market prices leading to dilution of current shareholders.
D. When a firm announces a seasoned equity offering, its stock price usually increases.
2. Which of the following correctly describes how stocks and corporate bonds are traded in the secondary market?
A. Stocks and bonds are both mostly traded "over-the-counter" through broker-dealer networks.
B. Stocks and bonds are both mostly traded on exchanges.
C. Stocks are mostly traded on exchanges while bonds are mostly traded over-the-counter.
D. Stocks are mostly traded over-the-counter while bonds are mostly traded on exchanges.
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