Initial public offerings are originally purchased by , which then turn around and sell them to .

Question

Quizplus · Accepted Answer

Initial public offerings (IPOs) are traditionally purchased by investment banks who underwrite the offering and then sell the newly issued shares to financial institutions such as mutual funds, pension funds, and hedge funds who then in turn sell them to individual households. Therefore, the correct answer is A) investment banks; financial institutions.

Initial Public Offerings Are Originally Purchased by , Which Then