Which of the following statements is FALSE?

A. In a cash offer, the firm offers the new shares to existing shareholders.

B. Historically, intermediaries would advertise the sale of stock (both IPOs and SEOs) by taking out advertisements in newspapers called tombstones.

C. Today, investors become informed about the impending sale of stock by the news media, via a road show, or through the bookbuilding

process, so tombstones are purely ceremonial.

D. Primary shares are new shares issued by the company.