Which of the following statements about IPOs is false?

Group of answer choices

A company is able to raise funds through an IPO.

An IPO is completed in the primary market.

IPO returns are usually positive and significant on the first day of trading.

IPO returns are usually better than other stock returns during the first five years of trading.

17.

Which of the following is true about a DMM, Designated Market Maker?

Group of answer choices

A DMM specifies their bid price, the price at which they are willing to sell.

Only one DMM makes a market for a company listed on the NYSE.

DMMs only make a market for one companys stock.

A DMM is also called a broker.

18

When an investment bank underwrites an IPO,

Group of answer choices

The investment bank buys the shares from the issuing firm at a discount.

The investment bank must initially receive the issuing firms approval of the red herring.

The issue is sent directly to the secondary market.

The issuing firm bears all the risk of not selling the entire issue.