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Omar Ansari, a Relatively Conservative Investor, Received a Prospectus from His

Question 150

Multiple Choice

Omar Ansari, a relatively conservative investor, received a prospectus from his stockbroker providing details about XYXY Biotech Company and its planned IPO. XYXY was developing a new and promising type of anti-cancer drug. After studying the prospectus, Omar decided not to invest in the IPO. Which one of the following items of information in the prospectus was most likely not a factor in Omar's decision?


A) XYXY was competing with many other biotech companies.
B) XYXY's CEO, although not a famous scientist, had a solid background in cancer research.
C) XYXY's drug might not be approved by Health Canada.
D) XYXY would not be profitable for many years, even if its new drug was approved by Health Canada.
E) XYXY would soon have to return to the capital market for additional financing.

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