Series 7 - General Securities Representative Exam
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Which of the following is not true of an IPO?
It helps the issuer raise capital
A
It is the first time an issuer sells stock to the public on an exchange
B
It is the only time the public is able to buy stock in the company
C
Companies must meet requirements by exchanges and the SEC to hold an initial public offering
D
Explanations
The public can buy shares on the open market after the IPO. The other 3 selections are true of IPOs