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True / False Questions 49.For industrial stocks in the U.S., the

Question : True / False Questions 49.For industrial stocks in the U.S., the : 1409493

 

True / False Questions
 

49.For industrial stocks in the U.S., the announcement of an SEO usually leads to a decline in stock price, with the decline averaging 3-4%. 
 
 

50.Mezzanine financing must come in the third stage. 
 
 

51.Underpricing is not a serious problem for most initial public offerings (IPOs). 
 
 

52.Most public issues must be registered with the SEC, and the company may not sell securities until the SEC has approved its registration statement. 
 
 

53.The most prevalent motive for firms to undertake an IPO is to create public shares for use in future acquisitions. 
 
 

54.Generally, IPOs are overpriced and are subject to the winner's curse. 
 
 

55.Shelf registration allows the firm to file a registration statement with the SEC to cover a series of subsequent issues. 
 
 

56.The first public issue by a firm is known as a seasoned equity offering. 
 
 

57.The underwriting spread for debt is generally less than that for equity. 
 
 

58.Rule 144A allows large financial institutions to trade unregistered securities among themselves. 
 
 

59.Underpricing is a technique used by underwriters to enhance the success of an issue. 
 
 

60.Spinning refers to the practice whereby an underwriter sells shares in a hot new issue to a CEO—for the CEO's personal benefit—for the purpose of the underwriter gaining future business from the CEO's firm. 
 
 

 

 

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