An initial public offering (IPO)is characterized by all of the following except that
A) it is the first time offering of stock by a corporation.
B) it has the potential to be sold later for a profit in the secondary market.
C) it can result in losing the investment.
D) it is available to individual investors before institutional investors.

Question

Quizplus · Accepted Answer

IPOs are typically available to institutional investors before individual investors, as these investors can purchase large quantities of shares and provide a larger investment for the company going public. Therefore, choice D is incorrect. Choices A, B, and C are all characteristics of an IPO.

An Initial Public Offering (IPO)is Characterized by All of the Following