Which of the following statements is FALSE?
A) In recent years, the investment banking firm of WR Hambrecht + Company has attempted to change the IPO process by selling new issues directly to the public using an online auction IPO mechanism called Open IPO.
B) The lead underwriter is the primary banking firm responsible for managing the deal. The lead underwriter provides most of the advice and arranges for a group of other underwriters, called the syndicate, to help market and sell the issue.
C) Because of the potential conflict of interest, the underwriter will not make a market in the stock after the issue.
D) The SEC requires that companies prepare a registration statement, a legal document that provides financial and other information about the company to investors, prior to an IPO. Company managers work closely with the underwriters to prepare this registration statement and submit it to the SEC.
Answer: C
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In terms of safety, "Red Rules" cannot be broken under any circumstances.
a. true b. false
Suppliers need to think about the cost of production versus the revenue which will be received from selling their product, and the change in profit which will be realized at different points on the schedule. This is called the:
A. Demand Curve B. Supply Line C. Law of supply D. Law of demand E. Demand Schedule