Acting upon assumed good advice,your brother buys stock in I-Link,an upcoming communications firm.Since this is the first time I-Link is trading its stock,your brother will be involved in a(n)

Question

Quizplus · Accepted Answer

Since this is the first time I-Link is trading its stock, it is considered an initial public offering (IPO), which involves the sale of new securities to the public. Option A, a secondary market transaction, involves the buying and selling of previously issued securities, so it does not apply here. Option C, a seasoned new issue, refers to the issuance of securities by a firm that has already had one or more offerings, so it does not apply to I-Link. Option D, a tombstone purchase, is not a commonly used term in finance and is not relevant to this scenario. Option E, a buy low transaction, is not a commonly used term in finance and is not relevant to this scenario.

Acting Upon Assumed Good Advice,your Brother Buys Stock in I-Link,an