Which of the following is true of an initial public offering (IPO)?
A) Buying an IPO stock is less risky than purchasing established companies in the secondary market.
B) An IPO stock can be sold later in the primary market.
C) An IPO's stock price may rise or fall rapidly on the first day.
D) An IPO represents a company that was just created within the last month.
Answer: C
Business
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A) test marketing B) volume discounts C) repeat buying D) market penetration
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In a product category, higher price levels can be sustained if the barriers to entry are low
Indicate whether the statement is true or false
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