Which of the following statements is incorrect about IPO? 1. When an entrepreneur or a venture capitalist sell his stock holdings in an IPO, it is called a primary offering. II. IPO underpricing is a wealth transfer from existing shareholders to new shareholders. III. A greenshoe option is an over-allotment option to provide price stability and liquidity in an IPO. IV. A firm commitment arrangement with an investment banker in an IPO occurs when the investment banker sells as much of the security as the market can bear without a price decrease. a. I and III only b. II and III only c. I and IV only d. II, III and IV only e. None of the other answers are correct